I had the singular commercial operation thought final year – as well as proposed office building the website to have the commercial operation thought the reality.
A crony of cave with the lot of income was additionally meddlesome in the thought – the integrate of months later, it got to the theatre where my genuine hold up work was preventing me from operative upon the project, so I asked if he would similar to to come upon house as well as cover my simple vital losses while I accomplished up the site. We did all this by email, it was viewable I was only asking him to cover the unclothed essentials, the bargain being which – when you formalised – he would get the share of the distinction in lapse for his investment.
Now you have been during the formalisation stage, he is pulling for 95% of the distinction as well as claiming the commercial operation is his. He’s the unequivocally abounding man as well as can means unequivocally expensives authorised illustration – me, upon the alternative hand, broke. I do not consider there have been most pro-bono solicitors in the UK. I’m unequivocally during the detriment during what to do, alternative than to forestall the site from trade until sorted?
“Don’t try as well as float with the sharks”… that’s roughly ironic… I took this man to his initial gin rummy list the integrate of years behind as well as pronounced just the same thing to him.
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So it was your idea, you did all of the work, you run the business, and he lent you how much money? Since nothing is formalized and there are no written contracts, he really doesn’t have a leg to stand on legally. He can claim ownership of the Royal Palace at Windsor if he likes, but that doesn’t make it true. He is trying to scare and strongarm you. Tell him you will pay him back the money that he lent you at, say, 10 % interest just to be nice. Or, he can sit down with you and be reasonable: 95% for you 5% for him. But I really don’t think that you want this person as a business partner. Just pay him what you owe him plus interest and be done with him.
He did bail you out, but 95% is a tad much. I would assume it is an opening gambit. 50% would be about right. Offer him 25% and see what he says. Now you are not entirely without your resources. Without a contract, he has no recourse on your business other than the fact that you may need more financing so a smart move on your part is to keep things very cordual. There is always the negotiating point of your salary which you can set. It could be set so that there is no profit. Keep that in mind.
Use your brain.
Don’t try to swim with the sharks. Find another shark, a bigger shark than he is, and throw him into the tank.
If you aren’t reading through the lines yet, what I am saying is find another partner with more money and more business savvy, strike a legal and fair deal up front, sell him your idea and let him help you get out of this.
Between you knowledge of the practical aspects of the business and his experience with business, competition and lawyers you should be able to come out on top with a lesson well learned.
To find this person you may have to dig deep into your network of connections but I don’t see any other way. If you are passionate and beleive in what you are doing he/she will buy in.
I don’t know anything about UK law , but I know the difference between right and wrong , and smart and stupid.
I can’t speak about your “friend” , but I can tell a little about you.
You would be wrong and stupid to enter into any agreement that gives 95% of profits to another party.
You say your “friend” is wealthy.Maybe he got that way by getting other people to agree to be wrong and stupid.
Don’t be another one of his chumps.
If your idea can’t come to fruition without you then you deserve a bigger share.Otherwise he would just steal your idea and run with it.Let him know this.
It sounds as if he is using bully boy tactics to bulldoze you out of what is obviously your idea and obviously something you have invested a lot of time in.
Maybe you should post this in the Legal section during UK hours?
If you cannot afford a solicitor as you hint then there may be pro bono advice available through the Citizen’s Advice Bureau but it may take time to arrange, I believe up to three months. Ideally you need to get someone to act on your behalf now and for nothing.
Maybe if you post there someone will take you on in good faith. And maybe you can even find another investor for your idea here if it is truly unique!
Good luck and don’t sign anything without good advice.