So about April last year I decided to take the plunge into the self employed life. Started my business with about R9.00 in my pocket. Was a very scary move, but doing rather well now.
Following month (April 09) I got a call from a friend who has his own business. He offered me a proposition that he wanted to get involved in my new venture. As the business was very shaky at first I welcomed any form of help, specially financial. So I didn't mind going into a partnership (1st Mistake). He offered me the use of his phones, internet and even vehicles. I obviously had all these items so never needed to use his. I kept a log of what loans he made to my business so that he can get paid back, these loans would include mostly marketing stuff like business cards etc. A new partnership account was also opened at the bank (2nd Mistake).
As my business was still new and not much work coming in I offered to help him in his business where he needed. I racked up quite a couple hours and kept a log daily.
A year later, my business is doing great, got many clients and making a living. My partner has been getting less and less involved over the year, to the point that I asked if he wants to leave as he wasn't contributing anything. He agreed.
Now the fun starts...
He then sent me an invoice for R******* in costs that I apparently ow him for using his services. This being phones, fax, internet bla bla. The amount really took me by surprise. I immediately challenged this with him but he feels he is right.
To try keep fuel off the fire, I went and worked out everything and calculated over and over to try find out how he came to hes amount. My calculations were nowhere near. I did offer to pay him what I felt was fair. He accepted but now wants the rest.
I have since opened a new bank account and transferred all the funds out the old one so he can not see or touch it. However I need his signature to close the old account and he refuses till he is paid. This is annoying because I have to pay the banking fees every month (Although its no more than R100 bucks a month), it is very annoying.
Furthermore, he has not paid me for any of the time I contributed to his business in the beginning.
* I have contacted the bank and they can't help.
* There is no black and white proof (Except the bank account) that a partnership ever existed.
* He hasn't shown me how he came to the amount he invoiced.
* The business is a sole prop. Partnerships are required to register a CC
So ya, this is one big bowl of funky soup. Any thoughts of what to do to end this in a calm and cool manner? What would you do?
Trying to keep courts out of this. I hate courts.
