Parties within a contract.

[ecalid]

One thing has has bothered me just lately is that unlisenced debt collection companies seem to be able to make a legally binding contract between themselves and an authorised legal entity that co exist with the same geographical identity.

In other words, they exist under seperate names but work from a single establishment.

I am led to believe that for a contract to exist between two parties that they must be geographically identifiable.

So if Mr Joe Bloggs of 123 Road name, Town formulates a contract with Mrs Joanne Bloggs of 123 Road name, Town. What is the consideration? If Joe is offering money to Joanne, it can be reasonably assumed that they share a bank. Does this not make the contract void?

And what if Joe Bloggs owns unlicensed Debt Collector Limited, excersing his rights to collection under law of property act. But also owns an authorised Debt Collecting Group and instructs them to make contact and attempt to collect. How can he be both parties? Surely the contract would be nullified.

[R0b]

What is the consideration?

Whatever they want it to be so long as it is something of value. It could be money, goods or even sweet wrappers (there is a real case on this involving Nestle). If there is only one sided consideration then it will deemed a gift and gifts are not enforceable unless the agreement is made in the form of a deed, because there does not need to be consideration for a deed to be enforceable.

And what if Joe Bloggs owns unlicensed Debt Collector Limited, excersing his rights to collection under law of property act. But also owns an authorised Debt Collecting Group and instructs them to make contact and attempt to collect. How can he be both parties? Surely the contract would be nullified.

Why would you think the contract would be nullified? Every day there are transactions between inter-group companies in the form of loans, sale of goods or other property, provision of services etc. Each company is classed as a separate legal entity in their own right and have their own liabilities. In your example, Debt Collector Limited (unlicensed) will be one entity with a specific company number and Debt Collect Limited (licensed) will also be a separate entity with a different company number. It happens all the time and is actually pretty common, particularly if there is one company within a group of companies that provides goods and services to the public and another company within the same group is a debt collection agency then the goods and services company could contract with the debt collection agency to act on its behalf to recover bad debts.

In terms of a unlicensed company contracting with an licensed company to collect debts on its behalf, that is possible subject to compliance with certain requirements under the Financial Services and Markets Act 2000 and the associated regulations.