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Friend and I set up joint beauty salon, lease of building is

actually still in previous tenant...
Friend and I set up joint beauty salon, lease of building is actually still in previous tenant as she has only 12 months to go, my friend knew her and we pay her the rent, I have paid £4000 for fixtures and fittings and £300 contribution to 2 months rent. I have taken £0 in wages as I was working my notice in my previous job and therefore had a salary. Today is officially my last day in my previous role and on Monday (2 days ago) she says it is not working and she doesnt want a partnership. Help
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Answered in 1 minute by:
3/27/2013
Thomas
Thomas, Lawyer
Category: UK Law
Satisfied Customers: 7,631
Experience: BA (Hons), PgDip, Practising Solicitor
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Hi,

Was it initially agreed with your friend that you would join her in partnership to run the beauty salon once you worked your notice?

Tom
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Customer reply replied 4 years ago


Yes and have forked out £500 on courses to train too but i am not bothered about that money

Right. Is she now saying that she does not wish for you to work there?

What is her justification for this and what does she say about returning the money?

Tom
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Customer reply replied 4 years ago


She says she is not going to carry me as I have to get my own clients and doesnt want to share the takings (she makes most of the money and as of yet I have never taken a penny)


However she now has a beautiful refurbished salon, kitchen, bathroom, nail stations etc etc which she has not paid a penny for


 

Ok.

What's your ideal resolution to this? That you work their with her or simnply that you have your monies returned to you?

Tom
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Customer reply replied 4 years ago

I dont want to work with her and want my monies, also unknown to her I have managed to keep my previous emplyment after explaining to them what has happened

Hi

Thanks for your patience.

If it was agreed that you would enter partnership verbally then this can be binding as a legally recognised partnership under the Partnership Act 1890. Therefore, I would state that you formed a legal partnership the moment that you agreed what you planned to do with the partnership.

You should state that because you have a partnership you are entitled to trade in the partnership, but given that she has refused to let you do this you consider this to be a breach of the partnership agreement.

Additionally because you have not executed a written partnership agreement the arrangement is governed by the partnership act. The Act states that all partners are equally entitled to the profits of the organisation. This is regardless of if a partner has not put in any time or effort and continues not to.

Therefore you should say that unless she pays you back all the money that you have expended then you shall instruct a solicitor to claim half of the profits that she starts accruing from the business. This should get her on a more concillitory footing and you can attempt to negotiate settlement or a payment plan from there.

You should state that unless a compromise payment plan is agreed then you will issue a claim against her.

You can instruct a solicitor to write this to her, if it is a simply letter before action then I would expect them to charge around £70 + VAT

Please remember to RATE my answer OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE or above if you are satisfied that you have received the correct legal advice (even if it is not the answer you wanted to hear), otherwise I do not receive any credit for answering your question.

If you are not willing to rate my answer as OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE then allow me to assist further by replying asking what clarification you require rather than rating my answer at levels below.

If you wish for me to provide you with further guidance on any question you may have in the future then please submit a further question to the board requesting me either by my profile or by marking your question. “FAO Tom”.

Kind regards,


Tom
Thomas
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