depth

Question

A [company removed] owes another [company removed] ₦35,000,000 from business transactions over about 5 years. Company A used to supply goods to Company B on credit, and B would pay and then purchase more goods. Over 5 years, Company A lost money and funds were misused, and the total owing to Company A is now ₦35,000,000.

In a meeting, Company B admitted owing this amount and promised to pay as transactions continued. Company A REFUSED and insisted that Company B should pay all outstanding balance or else submit land documents as security. Company B said no — it will pay as transactions continue.

I am Company B. The only realistic way to pay the debt is through the continuation of the buy-and-sell relationship. I cannot provide my land document. What are the next steps for Company B? Please advise.

P.O OHIKHENA &amp; Co · Accepted Answer

Hello,

Although, you have very slim options as it is. But you can suggest or propose entering into a memorandum of Understanding with Company A, stating how the payment would be and a proper payment plan. This agreement binds both parties. It should be prepared by a lawyer which I can assist with

Silverwrit Attorneys · Answer

Was there a stipulated time line for payments? If not, you could leverage that lacuna to determine how the debt should be repaid. You can also exploit a legal technicality in the contract duration to your favour.

depth

Lawyer Answers

P.O OHIKHENA & Co

Silverwrit Attorneys

Need Personal Legal Help?