Problem: Our client recently faced significant legal pressure after purchasing a care home. Despite paying an initial sum of £75,000, the seller failed to provide essential company accounts and vital business information. In response, the seller issued two statutory demands of £40,000 each—one against our client (the buyer) and another against a company alleged to be a guarantor. However, there was never any such guarantor under the agreement. These demands required immediate legal intervention to protect our client from unwarranted financial claims.
Outcome: Within less than 4 weeks, our expert litigation and insolvency lawyers successfully compelled the opponent to withdraw both statutory demands, totalling £80,000, safeguarding our client from baseless financial claims.
How long did it take? Less than 4 weeks.
Our client encountered serious challenges after agreeing to purchase a care home. Although they had made the initial payment of £75,000 under the sale purchase agreement, the seller failed to deliver crucial company accounts and other important information necessary for managing the business. This breach left our client at risk, including potential exposure to over £91,000 in adverse claims against the care home.
Rather than addressing these breaches, the seller escalated the situation by issuing two statutory demands of £40,000 each—one against our client and another against a supposed company guarantor, despite no such guarantor being part of the original agreement. Faced with these demands, our client sought our legal expertise to challenge the claims and protect their financial interests.
Key Points in Challenging the Statutory Demands:
- Breach of Contract: The seller’s failure to provide essential documentation and information was a significant breach of the sale purchase agreement, depriving our client of the benefits they were entitled to under the contract.
- Non-Existent Guarantor: The demands incorrectly alleged the existence of a company guarantor responsible for the payment. Our legal team demonstrated that no such guarantor was ever part of the agreement, rendering the demand legally baseless.
- Repudiatory Breach Entitlement: Due to the seller’s ongoing breaches, our client was entitled to terminate the agreement and seek the return of the £75,000 payment, plus interest.
- Procedural and Legal Deficiencies: The statutory demands were flawed, including the wrongful inclusion of a non-existent guarantor and the seller’s failure to comply with the contractual terms.
- Personal Capacity: We confirmed that our client had entered into the agreement personally, not on behalf of any company, further invalidating the demands against the alleged guarantor.
Our legal team acted swiftly, preparing detailed legal arguments and presenting substantial evidence. Within less than 4 weeks, our strategic legal intervention led to the successful withdrawal of both statutory demands, securing a positive outcome for our client.
Our litigation and insolvency lawyers are highly experienced in challenging statutory demands and resolving complex breach of contract disputes. We are committed to delivering swift, effective legal solutions that protect our clients’ financial interests.
Need Help with a Statutory Demand?
If you’ve been served with a statutory demand or are dealing with a breach of contract issue, don’t hesitate to contact us. We offer a Free Consultation at 0207 459 4037 on a no-obligation basis, or you can complete our online booking form today. Let us help you protect your financial future and resolve your legal challenges efficiently.
