Can I trust a friend with money

[valuefriendship]

I operate a unique business model as a freelance online trader with over ten thousand followers. I sell items on behalf of a third party, earning a cut or a commission, and sometimes, I profit from the difference between the asking price and the selling price.
Recently, a close friend entrusted me with selling her business, setting a price of £20,000. I have the opportunity to add my profit to her asking price, a responsibility I take seriously and value greatly.
I posted the business for sale online for £35,000 and received an offer within the second day of posting. However, while the buyer did a company check before handing me a deposit, they somehow came across my friend's contact number. Subsequently, they purchased the company directly from my friend behind my back.
My friend refused to pay me any commission, claiming that the buyer had contacted her directly and that she had offered her company to the buyer long before I was appointed to sell her business. ( which was not the case )
I would appreciate it if anyone could advise if I have a case.

Do you have any formal written contract with her? Take that and screenshots of texts/emails and speak to a solicitor. Without a papertrail it's your word against hers. Anyway she's no longer a friend if shes prepared to cut you out and stitch you up.

What did it say in the contract you made with your friend?

If you have a written contract - even emails or text, go after her for it.
If no, then you can't do anything I'm afraid.

You've lost your friend anyway haven't you?

Thank you for all the responses. Sadly, as we have been friends for over two decades, it was a verbal agreement.

Thanks again.

Even if your verbal conversation amounted a contract for you to get commission if you did the actual selling, what you would need is an agreement to exclusivity stopping them also conducting the sale. Like sole agent agreements for estate agents. Even though you couldn’t prove it anyway, I very much doubt that you discussed with your friend what the conditions were around direct approaches from the potential buyer.

On the bright side, it sounds like you did very little. So you’re not out of pocket for much time spent.

Thank you, Testina, for the response. Since it was my first time selling something of significant value, there were no discussions regarding the consequence of a buyer from my site finding out the location and vendor of the business I posted for sale and eventually doing the transaction between themselves.
As you said, I only spent a little time on this task. I am just disappointed that a friend I have known for over two decades was financially untrustworthy.

She's not your friend anymore. Personally, I'd try and forget about it.

She's not your friend. Legally it would probably cost more in legal costs than you'd make in commission from selling the business so I'd let it but she has shown her true colours .

You were silly to proceed without a written contract. Even if you had a verbal contract you should still have clarified what would happen in the event of a buyer contacting her directly. That's just sound business sense. She's not been financially dishonest, she's been perfectly open and honest about her intentions.

I don't think your friend has done anything wrong.

Has she offered you a small fee as payment for your time?

I wouldn't be too disappointed if she showed appreciation for my effort, but so far, it hasn't even been a 'thank'.

Presumably there was a solicitor involved...?

I think 🤔 in theory the idea of setting up a business with familar people as friends ect,

Seems to at first glance a sound one and emotionally intelligent...

The reality however can be something ele

Oops typo mistake else *

Did you really try to get a £15k commission on selling a £20k asset? I don't think it's your friend who has tried to screw anyone over here.
Did you agree with your friend a level of commission/profit? If not, you probably don't have a leg to stand on.

It's a close friend, but you were going to make £15k profit on the sale of her £20k business?

I think she dodged a bullet and you are taking the piss

Thank you for all the messages. My friend would give up this business if she could not find a buyer anyway. I was so surprised to receive an offer within two days of posting, though, it was not meant to be.
I am putting this aside now and will continue trading online.
Thank you all again.

I have learned the hard way to be business like in - well - business! Whoever I am working with. After being stitched up by friends A&B, I added exclusivity and non compete clauses to contracts. Then I was stitched up by Friend C and on getting seeking legal advice, it was clear they were in the wrong but my contracts were not robust enough to win in court. They might have been ok in small claims- which is more pragmatic and common sense - but the amounts involved were above the threshold for small claims and he offered to pay just below the threshold after a letter before action to avoid that. So now lawyers write my contracts and I finally understand why they need to be 20 pages of legalese. I nearly lost my business both times but have weathered the storms. And am 3 friends lighter. It absoutely sucks and I feel for you. So depressing that people behave this way but greed gets the better of many people. Even those we believe we know well and trust. My new motto is that proverb: 'trust God but tie up your camels'.

It seems like you are completely unwilling to explain how you justify attempting to take 15k commission for a business valued at 20k. That is simply incomprehensible to most people reading this. You were taking the piss. Did you inform your friend you were trying to earn that much from the sale?

That being said, there is almost certainly some legal recourse here, but as other people have mentioned it will likely cost you more than you would earn.

@BostonGeorge13 Why is it terrible that she could have made 15K on a 20K sale?
Why is that worse than the ‘friend’ business owner using OP’s experience and know how and then cutting her out?

One of these things is honest, the second is not.

Nowhere did the OP divulge what the offer was??

Unless you had a written contract between you both stating what if any commission you would get unfortunately if you didn't and it was only a verbal agreement then no you don't have any rights. Sorry

It is a bit odd that you were trying to make over 50% in commission.

She probably saw what you were doing, and under cut you. I think you were both in the wrong.

My thoughts precisely. OP has been 'done over' by the one she was trying to 'do over' 🤣