Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Based on your stated facts, if you sold the business and financed payment, then the buyer is the owner, until you successfully rescind the contract. The buyer's breach of payments, after paying over a substantial amount of the purchase price, does not void the deal. It's simply a breach entiting you to damages for default.
Therefore, the buyer is entitled to enforce the noncompete, absent your proving that you were not attempting to solicit customers within your former business' georgraphic territory -- which is the threshold question under Maine case law.
Hope this helps.
Terms and Conditions: By your continuing in this conversation with me, or by your clicking “Accept”, you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.
what kind of damages would he be entitled to under maine law if he has paid 72% of the original purchase price?
The percentage of payment does not determine his rights to damages.The right to damages is controlled by his ownership of the business.
If he cannot prove actual damages, then he would have to show that the customers you closed would have been reasonably foreseen as his customers, but for your intervention.
Also, he would get attorneys fees and costs, and he could potentially get punitive damages to discourage any repeat behavior -- this is not likely, though.