Mislead about business contract - how to get it declared void

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Original Message Added : 26 Mar 2011

Last year i was duped into signing a contract for 2 years for a take away. I feel i was mislead and lied to about a lot of the facts and figures and being naive i didnt think to verify what i was told. Due to lack of funds i couldnt afford to have the contract checked by a solicitor. Since signing for it i have kind of understood what i have tied myself into and there is no way out. The business is not turning over anywhere near what i was told it would do and i am really struggling to make payments for rent/wages/stock etc every month. i have tried reasoning with the landlord to hand it back to him but he wont budge and is threatening to take me to court. I cant allow this as i have a house so cant afford bankruptcy, the only thing i can find on the contract is that the Unrelated Witness who verified the landlords signature is his partner in their letting agency, he is either his partner or his employee. I am under the impression that this wouldne be legal as the are related through the business, is this correct?

Any help or advice would be most appreciated as i have hit rock bottom

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	Jack Smith from Chinese Kitchen
Location :	Bradford
Joined :	26 March 2011
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Posts :	2 ( 0)

Reply : 28 Mar 2011 - (Edited : 28 Mar 2011)

Hello

the agreement may not be enforceable because it was not properly executed. However, the law is fragemented in this area and fact dependent. You mention that you feel misled, and it may be worthwhile pursuing misrepresentation as a cause of action. However, a court may also argue that you should have carried out more due diligence than you did, and hold you partly responsible. It is impossible to comment further here without our litigation team considering the full facts of the case.

Good luck, and I am sorry you are in this situation.

Harriet Zimmermann

Acumen Business Law

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	Penina Shepherd from Acumen Business Law
Location :	Brighton
Joined :	08 November 2007
About :	The Business Specialist Law Firm
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Posts :	73 ( 33)

Reply : 28 Mar 2011

What facts would it be dependent on?

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	Jack Smith from Chinese Kitchen
Location :	Bradford
Joined :	26 March 2011
Contact :	Send Private Message
Posts :	2 ( 0)

Reply : 28 Mar 2011

Is there a reason why the landlord will try and make you bankrupt? Did you give a personal guarantee on the lease?

Was the lease signed under a limited company or on you personally?

If it was through a limited company that you own and have not given a personal guarantee then you could simply close the company down through an insolvency practitioner by undergoing a liquidation. That way you would not be personally liable for the lease as the insolvency practice would merely give the lease back to the landlord through a disclaimer. This would be the easiest and quickest way providing the business was setup and trading through a limited company.

If however it is on your personal name, then I would check whether the lease is assignable so you could transfer or sell it to another party? If there will be a debt(s) of some sort through the failure of the business then there are other insolvency options available apart from bankruptcy which could result in you not having to lose your house - an Individual Voluntary Arrangement could be an option.

In either scenario you will be able to deal with the problems regarding the lease.

If you need any advice on your business debts, do contact me and I can run through options with you.

Thanks

Kingsland financial solutions

http://www.kingslandfs.co.uk

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	Rehan Ahmed from Kingsland Business Recovery
Location :	Bradford
Joined :	03 January 2011
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Posts :	10 ( 3)

Reply : 29 Mar 2011

Simply, and also not simply, it will depend on all the facts and circumstances surrounding the case. Often the courts will not pronounce a rule that applies no matter what, because all cases are different, and the circumstances of each case will affect its outcome.

Harriet Zimmermann

ACUMEN Business Law

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	Penina Shepherd from Acumen Business Law
Location :	Brighton
Joined :	08 November 2007
About :	The Business Specialist Law Firm
Contact :	Send Private Message
Posts :	73 ( 33)

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