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Business Dispute Resolution Steps
Summary
In the absence of a written agreement, resolving business disputes can be complex. Gather evidence such as emails, invoices, and debt records to support your claims. Document financial losses, unpaid wages, and stolen products. Consider sending a formal demand letter to address the issues and request payment. Consulting a solicitor specializing in business disputes can help strengthen your position. Additionally, ensure you have all necessary evidence, including inventory records and security footage, to support your claims. If reconciliation is needed, communicate clearly and provide your reconciled accounts for review.Full Conversation
i have a food manufacturing company. we are two directors, faisal hussain from Amani Foods came to us to give them *% share in return he will be our distributor and also he will invest in our company but his investment would be all the raw material and overheads he will pay and we manufacture. now he is buying everything from us in loss and was selling as a distributor in profit. he put us in so much debt from all the suppliers and he didn't even pay for the wages of the staff. when I said we cant work like that , he stole our products from our freezer as well and now he is saying that we owe him money
That sounds like a complicated and stressful situation. Did you have a formal written agreement with Faisal Hussain outlining the terms of his investment and distribution deal? This will help determine your legal standing.
no
Without a formal written agreement, resolving this dispute can be challenging but not impossible. Here are some steps you can take:
- Gather all evidence of the transactions, including emails, messages, and invoices.
- Document the debts and unpaid wages.
- Consider sending a formal demand letter to Faisal Hussain for the stolen products and unpaid amounts.
It may be beneficial to consult with a solicitor to explore your legal options. Have you considered seeking legal advice from a solicitor specialized in business disputes?
- Gather all evidence of the transactions, including emails, messages, and invoices.
- Document the debts and unpaid wages.
- Consider sending a formal demand letter to Faisal Hussain for the stolen products and unpaid amounts.
It may be beneficial to consult with a solicitor to explore your legal options. Have you considered seeking legal advice from a solicitor specialized in business disputes?
no we did not , can u make a letter for us ~?
Sure, I can help you draft a formal demand letter. Here’s a template you can use:
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[Your Company Name]
[Your Company Address]
[City, Postcode]
[Email Address]
[Date]
Faisal Hussain
Amani Foods
[Address]
[City, Postcode]
Dear Faisal Hussain,
Subject: Formal Demand for Payment of Debts and Return of Stolen Products
I am writing to formally address the issues that have arisen from our business relationship. As you are aware, we agreed that you would act as our distributor and invest in our company by covering the costs of raw materials and overheads, while we handled the manufacturing.
Regrettably, this arrangement has led to significant financial losses and operational challenges for our company. Specifically:
- You have been purchasing products from us at a loss and selling them at a profit.
- You have accumulated significant debt with our suppliers.
- You have failed to pay the wages of our staff.
- You have taken products from our freezer without authorization.
These actions have put us in a precarious financial position. As of [Date], the total amount owed to us is £[Amount]. This includes the cost of the stolen productsand the unpaid wages. We demand immediate payment of this amount and the return of the stolen products.
Please remit the payment and return the products within 14 days of receiving this letter. Failure to do so will leave us with no choice but to pursue legal action to recover the amounts owed, along with any additional costs incurred.
We hope to resolve this matter amicably and maintain a professional relationship. We look forward to your prompt response.
Sincerely,
[Your Name]
[Your Position]
[Your Company Name]
---
Feel free to modify the letter as needed to fit your specific situation.
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[Your Company Name]
[Your Company Address]
[City, Postcode]
[Email Address]
[Date]
Faisal Hussain
Amani Foods
[Address]
[City, Postcode]
Dear Faisal Hussain,
Subject: Formal Demand for Payment of Debts and Return of Stolen Products
I am writing to formally address the issues that have arisen from our business relationship. As you are aware, we agreed that you would act as our distributor and invest in our company by covering the costs of raw materials and overheads, while we handled the manufacturing.
Regrettably, this arrangement has led to significant financial losses and operational challenges for our company. Specifically:
- You have been purchasing products from us at a loss and selling them at a profit.
- You have accumulated significant debt with our suppliers.
- You have failed to pay the wages of our staff.
- You have taken products from our freezer without authorization.
These actions have put us in a precarious financial position. As of [Date], the total amount owed to us is £[Amount]. This includes the cost of the stolen productsand the unpaid wages. We demand immediate payment of this amount and the return of the stolen products.
Please remit the payment and return the products within 14 days of receiving this letter. Failure to do so will leave us with no choice but to pursue legal action to recover the amounts owed, along with any additional costs incurred.
We hope to resolve this matter amicably and maintain a professional relationship. We look forward to your prompt response.
Sincerely,
[Your Name]
[Your Position]
[Your Company Name]
---
Feel free to modify the letter as needed to fit your specific situation.
in this situation who is in better position us or him as he ask us that we owe him money as he was investing through the same company from where he was buying our product as a distributor .
In the absence of a written agreement, it can be challenging to determine who is in a better position. However, you have strong points in your favor:
- Evidence of financial losses and unpaid wages.
- Documentation of stolen products.
- Records of debts to suppliers.
These elements can support your claim, especially if you can provide clear evidence. Consulting a solicitor specialized in business disputes can help strengthen your position.
Have you gathered all necessary evidence to support your claims?
- Evidence of financial losses and unpaid wages.
- Documentation of stolen products.
- Records of debts to suppliers.
These elements can support your claim, especially if you can provide clear evidence. Consulting a solicitor specialized in business disputes can help strengthen your position.
Have you gathered all necessary evidence to support your claims?
what evidence support us ?
- Emails and Messages: Correspondence that details the terms of the verbal agreement and discussions about the business arrangement.
- Invoices: Records of transactions showing the financial losses incurred and the amounts owed.
- Debt Records: Documentation of debts to suppliers and unpaid wages.
- Inventory Records: Proof of stolen products, such as inventory logs and security footage.
Have you collected these types of evidence?
- Invoices: Records of transactions showing the financial losses incurred and the amounts owed.
- Debt Records: Documentation of debts to suppliers and unpaid wages.
- Inventory Records: Proof of stolen products, such as inventory logs and security footage.
Have you collected these types of evidence?
Additionally, please reconcile Amani Foods Ltd account as we have already made substantial advance payments. My accountant is copied on this email and is currently reconciling the accounts on our end as well. If we do not receive a reconciled statement from you, we will share a copy of our reconciled accounts for your review once finalized.
this is his email to us
Here’s a draft for your email:
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Subject: Reconciliation and Payment Demand
Dear Faisal Hussain,
We do not owe Amani Foods anything. Kebab G's provided you with a *% share in exchange for your commitment to cover the costs of raw materials and overheads, while Amani Foods would serve as our distributor.
You have failed to meet your obligations, causing significant financial strain:
- Stolen products worth £*,*.
- Unpaid invoices for November collections.
- Additional products worth £*,* stolen in December.
We have CCTV footage supporting these claims.
Please reconcile the account and remit payment of £*,* immediately. If not resolved, we will pursue legal action and involve the police.
Sincerely,
[Your Name]
[Your Position]
[Your Company Name]
---
Have you gathered all the necessary evidence to support these claims?
---
Subject: Reconciliation and Payment Demand
Dear Faisal Hussain,
We do not owe Amani Foods anything. Kebab G's provided you with a *% share in exchange for your commitment to cover the costs of raw materials and overheads, while Amani Foods would serve as our distributor.
You have failed to meet your obligations, causing significant financial strain:
- Stolen products worth £*,*.
- Unpaid invoices for November collections.
- Additional products worth £*,* stolen in December.
We have CCTV footage supporting these claims.
Please reconcile the account and remit payment of £*,* immediately. If not resolved, we will pursue legal action and involve the police.
Sincerely,
[Your Name]
[Your Position]
[Your Company Name]
---
Have you gathered all the necessary evidence to support these claims?
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