Legal Advice needed: Urgent help

[Hyde]

Thank you so much for eveeything. I have somehow managed to postpone it by Monday

I drafted an agreement and he was pissed off after reading it and asked some time for consultation. Before he was talking about give me the money and you must trust me and now I asked him to sign the agreement with various clauses and called it a paper work just like he wants money on verbal agreement and on the basis of trust.

He said he will sign it tomorrow as one of the condition I set was the outcome of his current business. It was very useful advice given in this thread that what if he is unable to pay after 12 months... i also enclosed various other conditions which gives greater share of the profit and access to accounts if needed... if the money was not returned on time etc

I also asked him to sign legal agreement after visiting solicitors office or forget about it.. or else he can just talk to aunty and I am out... if my conditions were not fulfiled to sign as a witness...

Now its slightly under control and hopefully I will visit my family lawyer tomorrow or at least speak to him on the phone so that i can do something before paying him on Monday. I think this is a big risk for her investment but she trusts her blindly so i will not have a final say on this matter

Thank you for amazing points, without your helo I could not have drafted an agreement like the way it is...

 

[Verve]

Thank you so much for eveeything. I have somehow managed to postpone it by Monday

I drafted an agreement and he was pissed off after reading it and asked some time for consultation. Before he was talking about give me the money and you must trust me and now I asked him to sign the agreement with various clauses and called it a paper work just like he wants money on verbal agreement and on the basis of trust.

He said he will sign it tomorrow as one of the condition I set was the outcome of his current business. It was very useful advice given in this thread that what if he is unable to pay after 12 months... i also enclosed various other conditions which gives greater share of the profit and access to accounts if needed... if the money was not returned on time etc

I also asked him to sign legal agreement after visiting solicitors office or forget about it.. or else he can just talk to aunty and I am out... if my conditions were not fulfiled to sign as a witness...

Now its slightly under control and hopefully I will visit my family lawyer tomorrow or at least speak to him on the phone so that i can do something before paying him on Monday. I think this is a big risk for her investment but she trusts her blindly so i will not have a final say on this matter

Thank you for amazing points, without your helo I could not have drafted an agreement like the way it is...

Is he buying and operating the shop as a sole trader or a limited company?

Either way you can get a business loan agreement in place. This will give you access to using debt recovery agencies if the need arises. As a sole trader his personal property won't be shielded but as a limited company those will be. But with limited company you have different set of rights, actions and access to annual accounts.

If you go for personal loan agreement, you'll be filing to courts yourself/via solicitors and I would strongly advise against that route.

Setup a limited company for your auntie (£17 online, 20 minutes), make her a director, route the money through the limited company as a business loan to this guy. This way she'll save on tax on profits as well.

Do it the right way.

 

[I.R.A]

It's £50,000 for 33% share for 1 year when he promises to return the entire sum to retain 100% share of his business

If it was me (in Pakistan) I would try registering this whole deal as a partnership, I would insist on a partnership deed ........ I think there also must be some partnership Act in UK to govern partnerships. Why I would do that? because it involves profit sharing. Later once the other person wishes to pay me back the money I would get my share back based on market price, including the goodwill monetary value of the business and dissolve the partnership.

 

[Ghareeb_Da_Baal]

I say get it notarized and keep paper trail.Any signed document is binding.This is a promissory note and legally enforceable.The benefit of including a notary is that this will help prove the validity of the document in case it is ever disputed.
Also add clause that any cost including legal fees in case of failure to pay back the loan withing the stipulated time shall be borne by the borrower.

 

[Ahmet Pasha]

Bro don't let your relative just another "O help my rishtedars screwed me over thread on Ummah.com" there's literally tonnes of stories of overseas desis screwing their relatives for money.

Hello

Basically my aunt is giving loan to one of her friend's husband who wants to buy a shop in London. He promises to return the money after 12 months and also promises to share agreed amount of net profit with my aunt who trusts her a lot.

Now she wants me to bear witness of this transaction but as usual I am sceptical about all such transactions outside family so I insisted her to have a written agreement so that she has some sort of proof that she lend her money to her friend's husband. I have also convinced her to do bank transaction as she was about to hand over the money in cash. It's not a small amount but she somehow managed to arrange cash. Now I insist her to have at least the basic agreement something like this

But what is the legal value of this agreement? What can she do to ensure that in case he refuses to pay the amount she has some sort of authority to demand her money back.

PS: Please do not come with posts like she shouldn't lend money, it's not right, whatever... as it's beyond my control. The money is going to her friend's husband and I have already tried to change her mind, but in vain. My job is to witness the transaction but I have forced her to do bank transfer + written agreement. I wanted it to happen through some sort of solicitor or legal channel but I am not sure if they take such cases. The money will be handed over today so I thought why not ask from friends before its too late

Thanks for advice