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Roger
Roger, Attorney
Category: Business Law
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Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by West
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I sold my business for $200,000 and went to work for the buyer.

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I sold my business for $200,000 and went to work for the buyer. There was no employment contract or non compete agreement. There was also no mention of my employment in the sales agreement. It didn't work out and I left the company. To date they have only paid $29,000 and refuse to pay any more. They are still using my web site, name, phone numbers and customer base as well as all of my equipment and building. He is refusing to pay because I left and one of his customers followed me into my new business. His attorney is saying that he has the right to withhold payment and continue to operate the company the I sold him as is.since one of the customers pursued me. Does he have any valid defense?
Submitted: 1 year ago.
Category: Business Law
Expert:  Roger replied 1 year ago.
Hi - my name is XXXXX XXXXX I'm a Business litigation attorney. Thanks for your question. I'll be glad to assist you with this.

Are you saying that the buyer is refusing payment because one customer followed you?
Customer: replied 1 year ago.

yes


 

Expert:  Roger replied 1 year ago.
Ok. Thanks for the information. I just wanted to make sure I understood correctly.

Unless the sales agreement says that the purchase price is contingent on your guarantee that all current customers would remain customers, then this sounds like a bogus argument.

Further, if there is no non-compete agreement in place, then there should legally be nothing that would prevent you from seeking out former customers. It sounds to me like the buyer is trying to push you around and get the business for about 10% of what he agreed to pay you.

It doesn't appear that the buyer would have any legal basis to claim he doesn't have to pay because a customer followed you to your new business. It sounds like you need to consult a local attorney to write a demand letter to the buyer, and if he refuses to pay, you can sue for breach of contract to seek the balance of the money due under the sales contract.

I hope this answers your question, but if you need something further, please let me know.
Roger, Attorney
Category: Business Law
Satisfied Customers: 26537
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by West
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