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The AI Legalese Decoder: Your Solution to Understanding £40K Penalty Clauses and Navigating Legal Issues Between Scottish Companies and English Courts

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AI Legalese Decoder can help with the situation by offering clarity and understanding of the legal implications involved in the contract between the relative and the broker. The tool can assist in deciphering the terms and conditions of the contract, identifying any unenforceable clauses, and providing insights into the potential legal ramifications of the broker’s actions. Additionally, it can help in assessing the likelihood of the case reaching court and provide guidance on the best course of action to proceed.

## Selling the Business and Contract Dispute with Broker

An older relative has been attempting to sell their business in order to retire. For several years, a specialist broker (with a previously good reputation) has been cold-calling offering to handle the sale. Around a year ago, my relative took them up on an offer of a no-obligation initial meeting, which eventually led to him paying £4,000 and signing a contract for the broker to handle the marketing and sale of the business.

### Broker’s Poor Performance

Following payment, my relative received a poorly-written and factually inaccurate brochure on the business and experienced little to no communication from the broker despite repeated inquiries regarding the marketing and sale efforts. The only attempt the broker made to sell the property was an inaccurate listing on their own website, which inaccurately portrayed the turnover and location of the business.

### Dispute and Legal Threats

Dissatisfied with the broker’s efforts, my relative claimed chargeback through American Express and received his ┬ú4,000 back. However, the broker then submitted a protocol before action to my relative citing a penalty clause of ┬ú40,000 for breach of contract. Additionally, the broker claims that any legal action will be held in English courts under English law, despite both parties being based in Scotland. The contract also makes references to the parent company of the broker, which is based in England.

### Legal Questions and Concerns

My relative has received legal advice stating that the penalty clause is unenforceable, but is now involved in a back-and-forth with a paralegal for the parent company. I am concerned about the potential for significant costs in legal fees, especially if the case were to be heard in England rather than Scotland.

AI Legalese Decoder can offer insights into the legality of the penalty clause and the jurisdiction of the case, providing guidance on the potential costs and the best way to proceed. This tool can also help in deciphering any contractual terms and conditions that may impact the case.

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Original:
Title: How AI Legalese Decoder can simplify complex legal documents

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Revised:
Title: The benefits of using AI Legalese Decoder to simplify complex legal documents

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2 Comments

  • thomasjralph

    It would depend on the terms of the contract; this wouldnÔÇÖt be deemed to be a consumer contract as itÔÇÖs a business to business sale.

  • Lloydy_boy

    > I had advised my relative it would probably be worth consulting with a commercial lawyer (either English or Scottish) and having them deal with communication with the company

    This is the correct advice.

    > but he is reluctant due to the costs involved

    Then tell him best thing to do is to pay the £40k now in order to save on paying *their* escalating/future legal costs.

    If he wonÔÇÖt listen to reason, i.e., getting proper legal advice on the agreement, you canÔÇÖt help him.