Business/investment contract (Can I get any money back?)

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J. Vizi

Member
23 February 2019
1
0
1
Hey everyone.
I have given someone $20 000 from a loan I have borrowed previously.
We had a specific written contract which says that the business is responsible for paying the loan installment, which sometimes happened but missing still about 19k.

This contract has his name and personal details as address and phone number so as Mine. Signatures too.
Here are the details of the terms and conditions:

1. The business pays for the weekly loan installment, which was obtained by the Investor with the purpose of financing the business. It is in effect until the loan has been fully paid off.
The loan details:
Requested amount: $ 20 000 Received amount $19 850
Invested amount: $19 000
Loan start date : 04/04/2016
Interest: variable, 13.69%
Repayments amount:$135.22
Loan term: 3 years and 8 months.

2. For the benefit of the investment collaborator, the first $1000 of the net profit is free of any profit share on a weekly basis.

3. Above $1000 net profit/week the investor must be paid at the rate of 50%. It is in effect for 2 years, starting from the launching day of the business, which is ........ (It has never been given because the business was not existing yet)

4. After two years the investor sells his 50% of share to the investment collaborator, if he is willing to buy it within a month.

Conditions for the above point.
- The price is agreed by both parties, otherwise a third-party must determine the current market value.
- The value of the business must be at least the double of the invested amount.
- If the investment collaborator fails to purchase the investor's share or both parties agree on, the contract renews for an additional two years with the same condition.
 

Tim W

Lawyer
LawTap Verified
28 April 2014
3,574
693
2,894
Sydney
Hey everyone.
I have given someone $20 000 from a loan I have borrowed previously.
Where you got the money that you lent him from doesn't matter.

So, what did you do exactly?
  1. Is "the business" a corporation (that is, a company),
    or is this guy a sole trader?

  2. If a company, did you loan the money to the person, or to the business?
    That is, who is the other party to the loan?
    (no matter which entity is (meant to be) (re-)paying)

  3. When you say "investor", what did you invest in, and how?
    For example, did you buy a share of the business,
    or did you just loan him/it an unsecured $20,000?

  4. Is the business operating? Is it solvent?
    Are you involved in it in any way other than as
    (someone who is probably) a creditor?

  5. Are you expecting repayment of a loan, or a repayment of capital,
    or dividends (a share of profits)?

  6. Why do you want your money back now?