How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Senior Partner Your Own Question

Senior Partner
Senior Partner, Solicitor
Category: UK Law
Satisfied Customers: 13276
Experience:  30 years experience in business law and related topics such as employment law
18726264
Type Your UK Law Question Here...
Senior Partner is online now
A new question is answered every 9 seconds

On 01.01.2005 companies signed unsecured loan agreement for

Resolved Question:

On 01.01.2005 companies signed unsecured loan agreement for 20 years. After 8 years the Lender is not able to pay interests but can pay main debt in the future.
Are there any restrictions why it is not possible under English law to waive on 01.08.2013 all accrued interests from 01.01.2005 and/or apply 0% interest from 01.01.2005 as well as extend the agreement for next 50 year (with 0% rate)?
Does it need to be made in the form of deed only?
Submitted: 1 year ago.
Category: UK Law
Expert:  Senior Partner replied 1 year ago.
Thank you for your question. I take it you mean the borrower is unable to ay interest? It is possible for the lender to waive interest and extend the loan agreement. If there is not consideration given then it is probably better by deed. The only potential legal issue is the potential for a tax charge if the lender and borrower are connected and the interest waiver has a beneficial tax effect for one party - but it seems unlikely. Otherwise the parties are free to do as they wish if it is seen as commercially sensible to restructure the loan
Customer: replied 1 year ago.
"I take it you mean the borrower is unable to ay interest?" Yes

"If there is not consideration given then it is probably better by deed."

Why "probably" and what are negative consequences if agreement is not witnessed except difference in limitation period?
Expert:  Senior Partner replied 1 year ago.
If there is no consideration then it could be unenforceable. I said probably because actually there is usually a benefit to the lender in restructuring because to enforce the original agreement might lead to a default so that is really enough. I am cautious so I would execute a restructure as a deed just in case.
Senior Partner, Solicitor
Category: UK Law
Satisfied Customers: 13276
Experience: 30 years experience in business law and related topics such as employment law
Senior Partner and 2 other UK Law Specialists are ready to help you
Customer: replied 1 year ago.
what does it mean "could be unenforceable"?
Expert:  Senior Partner replied 1 year ago.
Well ultimately it is a matter for the court to determine if there is consideration or indeed if the lender is estopped from denying the waiver of interest. English common law is not black and white and a lot depends upon the particular facts . My view is to adopt the cautious approach and execute as a deed to avoid problems later.
Senior Partner, Solicitor
Category: UK Law
Satisfied Customers: 13276
Experience: 30 years experience in business law and related topics such as employment law
Senior Partner and 2 other UK Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick Leeds, UK
< Last | Next >
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick Leeds, UK
  • I did not know a French Law service existed and I was very impressed with the speed of reply --- very professional. Many thanks! Ms. Baker Alfafar, Spain
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie USA
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
 
 
 

Meet The Experts:

 
 
 
  • Ben Jones

    Solicitor

    Satisfied Customers:

    8364
    Specialist in UK Law with expertise in UK Employment Law
< Last | Next >
  • http://ww2.justanswer.com/uploads/venkoj/2010-02-20_133027_ben_pic.jpg Ben Jones's Avatar

    Ben Jones

    Solicitor

    Satisfied Customers:

    8364
    Specialist in UK Law with expertise in UK Employment Law
  • http://ww2.justanswer.com/uploads/CH/chathamchamber/2011-4-24_191833_1.64x64.jpg INC's Avatar

    INC

    Solicitor-Advocate

    Satisfied Customers:

    3850
    LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
  • http://ww2.justanswer.com/uploads/taratill/2010-03-09_111600_phpsik04M_c2AM.jpg Jenny Mackenzie's Avatar

    Jenny Mackenzie

    Satisfied Customers:

    2612
    Over 10 years experience in general legal matters
  • http://ww2.justanswer.com/uploads/matthewjones/2009-9-7_20342_picture_007.jpg Matthew J's Avatar

    Matthew J

    Solicitor

    Satisfied Customers:

    323
    4 y PQE (Partner) - Commercial / Residential Property & Property and Civil litigation experience
  • http://ww2.justanswer.com/uploads/TO/touchwoodsden/2013-12-6_91518_MeforJA.64x64.jpg Stuart J's Avatar

    Stuart J

    Solicitor

    Satisfied Customers:

    5198
    PGD Law. 20 years legal profession, 6 as partner in High Street practice
  • http://ww2.justanswer.com/uploads/RE/Remus2004/2012-4-22_93111_2bigstockPortraitOfConfidentFemaleL6943985.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    24742
    Over 5 years in practice.
  • http://ww2.justanswer.com/uploads/JO/Josh2010/2012-4-29_19490_GettyImages80121770B.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    6561
    LL.B (Hons), Higher Prof. Dip. Law & Practice
 
 
 
Chat Now With A Solicitor
Senior Partner
Senior Partner
3072 Satisfied Customers
30 years experience in business law and related topics such as employment law