While you can argue this is sale, it is likely a simulated sale and not a true sale, since it was to his wife. As far as the equipment, that is based upon your contract
with him and that is separate from the lease of the property. If he is in breach of the lease that does not necessarily mean that he is in breach of your equipment lease. If the equipment lease is tied into the building lease, then you have a problem and if he is in breach you would be able to sue him to recover the money for the equipment paid to date and to terminate that equipment deal and not owe him the remainder. If you lose that suit, then you would lose your $40K.
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