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Hi, hoping for some advice please.
A few years ago I invested in a friends retail business, they created and signed a personal guarantee to assure me that should the business go bust that within 6 months they would reinburse my investment.
The lady who I invested in was a friend, so when she had no choice but to liquidate her business I was very understanding and didn't enforce the fact that in the contract stated she would repay in full within 6 months.
A year later she went into business with her cousin and they agreed that their new business would start paying back my investment, I received payments from both her and from the new company.
Unfortunately that business also went bust and my friend was left in financial hardship - I of course couldn't force her to honour any payments at that time.
But, she then moved away, we stayed in contact for a while and I would ask her how she was, but never asked about money - so it was a shock when all of a sudden she started ignoring me,
Now 3 and a half years on and pushed along by family, I decided to start proceedings to recover my lost money. However her lawyer has come back and said I have breached the contract terms in 2 ways -
1 - Allowing her more time then stated in the contract to pay
2- Varying the initial terms of the loan by accepting payments from a new business in connection to the intitial payment and not from the company in the guarantee
Do they have grounds to counteract my claim?
My lawyer says I have 50/50 of winning in court so I am lost as to whether I should proceed and potentially lose and have their legal fees to pay as well as my own or whether I should seek for a settlement?
Other points to add- the personal guarantee listed 3 directors names, however only one signed - does that make them all liable or just her?
There was wording in guarantee that says payments will be made via methods verbally agreed- could this bite me in the bum if I take it to court?
I am sorry for the rant, just so unsure what to do- solicitor never gives a straight answer and I am mounting debt with her with each visit.
Any advice appreciated.
Bev
A few years ago I invested in a friends retail business, they created and signed a personal guarantee to assure me that should the business go bust that within 6 months they would reinburse my investment.
The lady who I invested in was a friend, so when she had no choice but to liquidate her business I was very understanding and didn't enforce the fact that in the contract stated she would repay in full within 6 months.
A year later she went into business with her cousin and they agreed that their new business would start paying back my investment, I received payments from both her and from the new company.
Unfortunately that business also went bust and my friend was left in financial hardship - I of course couldn't force her to honour any payments at that time.
But, she then moved away, we stayed in contact for a while and I would ask her how she was, but never asked about money - so it was a shock when all of a sudden she started ignoring me,
Now 3 and a half years on and pushed along by family, I decided to start proceedings to recover my lost money. However her lawyer has come back and said I have breached the contract terms in 2 ways -
1 - Allowing her more time then stated in the contract to pay
2- Varying the initial terms of the loan by accepting payments from a new business in connection to the intitial payment and not from the company in the guarantee
Do they have grounds to counteract my claim?
My lawyer says I have 50/50 of winning in court so I am lost as to whether I should proceed and potentially lose and have their legal fees to pay as well as my own or whether I should seek for a settlement?
Other points to add- the personal guarantee listed 3 directors names, however only one signed - does that make them all liable or just her?
There was wording in guarantee that says payments will be made via methods verbally agreed- could this bite me in the bum if I take it to court?
I am sorry for the rant, just so unsure what to do- solicitor never gives a straight answer and I am mounting debt with her with each visit.
Any advice appreciated.
Bev
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