Legal Question in Business Law in United Kingdom

Sole Partnership

I was a partner for a small building company that ceased trading over a year ago. We built a house for a client under the terms of the NHBC. Recently, my then building partner recieved a letter from the NHBC stating that the client has complained about certain areas of work and is therefore seeking rectification. As both myself & then partner are unable to do the required work due to no finances, the NHBC will instruct their approved contractor to carry out the work and seek the costs off of us. The costs could be anything up to �10 - �20k. If they seek the costs could they use my house as a guarantee for getting their money back? I also have a wife and a 18month old child. The last thing I want to happen is lose my house!

Please advise.


Asked on 5/27/03, 8:44 am

1 Answer from Attorneys
Richard Grams Oldham, Li & Nie

Re: Sole Partnership

To properly advise, I would need details of the terms of your contract with the NHBC and any other additional 'side' contracts you may have entered into with the client. Also, please confirm whether you actually provided any personal guarantees in connection with this project. If so, the terms of the guarantee (if contained in a separate document) will also be needed to advise.

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Answered on 6/09/03, 5:18 am


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