Letter before Action - Unpaid Promissory Note

The document titled 'Letter before Action - Unpaid Promissory Note' is of great importance as it serves as a formal notice to the recipient regarding a claim for fraud on a promissory note. The document begins with an account job company and account job address single line, followed by the recipient's name and address. The letter is sent by registered post and email to ensure proper delivery.

 

The detailed introduction of the entire document explains that the sender is making a claim against the recipient for breaching the promissory note. The sender accuses the recipient of fraudulently replacing the shares in the company with an unsecured promissory note. The sender refers to a share purchase agreement dated date, where the recipient agreed to purchase the shares in the company for a specified amount. The completion amount was to be paid on the completion date.

 

However, the recipient informed the sender that they did not have sufficient cash flow to make the full payment. As a result, the recipient promised to repay the outstanding balance by issuing a promissory note. The promissory note, dated date, states the amount owed, the repayment date, default interest rate, final maturity date, and jurisdiction. The sender accuses the recipient of breaching the promissory note by failing to repay the debt on the repayment date.

 

Furthermore, the sender alleges that the recipient made fraudulent misrepresentations by promising to transfer a property as security for the loan. However, it is revealed that the property does not belong to the recipient personally, and they have no control over it. The sender claims that the recipient used various sham and evasive devices, such as anonymous email accounts and sham phone numbers, to mislead them. The sender asserts that they possess written statements from other victims of the recipient's fraudulent scheme.

 

The document concludes by demanding immediate payment of the outstanding loan with interest. If the payment is not made within 14 days of the letter, the sender threatens to initiate debt recovery and fraud proceedings without further notice. The sender explicitly states that they have not waived any contractual rights and reserve the right to pursue all legal and equitable remedies, including civil and criminal proceedings.

How to use this document?

To effectively use the 'Letter before Action - Unpaid Promissory Note' document, follow the step-by-step guidance below:

1. Provide information: Fill in the account job company and account job address single line at the beginning of the document. Also, enter the recipient's name and address accurately to ensure proper delivery.

2. State the claim for fraud: Clearly state the claim against the recipient for breaching the promissory note and committing fraud. Use specific language to convey the seriousness of the accusation.

3. Explain the background: Provide a detailed explanation of the share purchase agreement and the terms related to the completion amount and payment. Highlight the recipient's failure to make the full payment and their promise to issue a promissory note instead.

4. Describe the promissory note: Outline the key details of the promissory note, including the repayment date, default interest rate, final maturity date, and governing jurisdiction. Emphasize that the recipient breached the promissory note by failing to repay the debt on time.

5. Allegations of fraud: Describe the recipient's fraudulent misrepresentation regarding the transfer of a property as security for the loan. Explain that the property does not belong to the recipient and that they used deceptive tactics to mislead the sender.

6. Provide evidence: Mention that the sender possesses written statements from other victims of the recipient's fraudulent scheme. State the intention to submit this evidence in potential civil or criminal fraud proceedings.

7. Demand immediate payment: Clearly demand immediate payment of the outstanding loan with interest. Specify a deadline of 14 days from the date of the letter for the payment to be made.

8. Warn of consequences: Warn the recipient that failure to make the payment within the specified timeframe will result in the initiation of debt recovery and fraud proceedings without further notice.

9. Preserve legal rights: Explicitly state that the sender has not waived any contractual rights and reserves the right to pursue all legal and equitable remedies, including civil and criminal proceedings.

10. Sign and send: Sign the letter with the account first name and account last name. Send the letter by registered post and email to ensure proper delivery and documentation.

By following these steps, you can effectively use the 'Letter before Action - Unpaid Promissory Note' document to address the recipient's breach of the promissory note and fraudulent actions.