Recovery Money from "Friend"

trigarlaly

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a4a

trigarlaly wrote: »

My partner "invested" £4500 in a business venture

I think these few words sum it up.

Like it or not, an investment is an investment. 'Investments can go up or down'. There is no loan, therefore no chance of recovery.

Your partner did it to make money.....

a4a

trigarlaly wrote: »

Thanks tixy,
I would have at least tried to give something back to the people who put their personal money in,

Why? You takes your chances, you takes your risks !

Would you/your partner have given back any profit made?

It really gets to me, when people invest and then complain when its gone wrong.

trigarlaly

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a4a

trigarlaly wrote: »

Yes a4a
We would have !
We would have split any money.

You would have given back all your profit?
Why would you 'invest' on this basis then? or are you now saying it was a loan, in which case its a whole different matter.

robatwork

You have a written agreement - can you scan it in and redact the confidential bits ie name/address, then post here.

Tixy

trigarlaly wrote: »

Not a legal business partnership but on the agreement that the money would be paid back with a cut of any profits when the venture became successful.

Exactly what the agreement states is relevant.

Does it specify what would happen if the business fails/ceases trading?
Does it state that the original amount of money will be repaid. And a cut of profits when the venture is successful. So differentiating between those 2 items.
Or does it state that the original sum and a cut of profits will both be paid when the venture is successful.

Does it state how will the cut of profits be calculated - was it a % share of all future profits indefinitely, or a % share of profits for X number of years or what?

trigarlaly

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trigarlaly

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a4a

trigarlaly wrote: »

We would have SPLIT any profit from the sale of the equipment A4A. Least then it would have been a goodwill gesture.

My "invested" was also in quote marks a4a .
"FRIEND" wanted money and assistance to get the venture ready to go. But once the doors were open he wanted no input input from us. Was his dream!!! So the terms were that we would get repaid with a small comission of future profits as interest.

There are two different issues here.

1) You say you would have split the profits, so you were expecting a profit, therefore it was an investment but then you say..
2) The investment was in quote marks. Therefore, did you believe it was a loan to help a friend out?

You then say you would get repaid a small commission of future profits which contradicts both 1 & 2.

Therefore, you have to decide how the money was put in and as such how you think it should be paid back.

Which do you believe it was? A loan or an investment? When we know the answer to that, we can give a proper opinion.