Ask an UK Law Question, Get an Answer ASAP!
Would this merely be an investment? You would not be taking possession of any separate part of the cafe or carrying out any other kind of business from there?
What would you be seeking in return for your investment? A percentage share of the profits?
Hi, I would not be taking any possession of the cafe or any other kind of business from there. Yes I would only be taking a share of profits through perhaps partnership agreement.
Thanks for your question. Sorry for the slight delay in responding.
There will be a provision in the Lease that prohibits share possession of the premises with others, so provided you do not breach this then there will be no breach of the lease which the landlord could enforce in this regard. You will have to have the lease checked for any other terms specific to that lease and that tenant to ensure that there are no other prohibitions but, generally, I would not expect any.
On that basis you could draw up a partnership agreement confirming what your proposals are but it is important to note that you will not acquire nor shall be able to acquire any interest in the lease in the future. It will remain separate to your agreement and if he defaults on the partnership agreement then although you would be able to sue for the contractual breach you would not be able to compel him to assign (ie. sell) the unexpired residue of the lease to a new tenant - you will simply be able to sue for damages.
Similaly if he tries to assign the lease then you would not be able to restrict the landlord from agreeing to give his consent to this, though again if you have a term in the partnership agreement stating that the tenant should not sell unless you are in agreement then you would be able to sue for contractual breach.
If this has been useful please kindly click accept so that I may be rewarded for my time. If you do not click accept your money stays with the site and I do not receive any credit for the time I have taken to answer your question.
I will answer your follow up questions you may have.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).