Just to clarify some points: The purchaser had the option of paying the whole $26K at the execution of the contract or pay $20K down at execution of contract and the remaining $6K in 3 equal installments. At the time of the execution of the contract, the purchaser told the seller he would have the $20K down payment within the week. That NEVER occurred. purchaser never paid the down payment or installments.
The contract has a clause that said "the seller has right to cancel agreement if purchaser fails to pay when due, in the event of the purchaser's insolvency or bankruptcy, or if the seller deems that its prospect of payment is impaired"...
The agreement also states that the seller "retains security interest in the business assets and inventory until paid in full" and that "failure to remit payment in full to the seller shall result in forfeiture of any payments received and reclamation of business property, assets and/or inventory"
Just trying to determine if their contract clauses cover the seller to enable her to re sell her interest
one last reply.....
the original sale was for seller to sell her ownership interest and rights to the seller of the business. the agreement also states that title to the business will remain with the seller until delivery and actual receipt of payment as agreed by the purchaser to the seller.
based on the non-payment, the seller served the purchaser a notice of default with a time frame to pay the entire amount due. that has come and gone. the seller also served the purchaser with a notice advising him that the contract was canceled per the default. these documents were filed with the clerk of the court.
I have executed an agreement with the seller to purchase her business interests but its contingent on her having full authority to sell it. I have not paid any monies but will soon be required to do so.
You are telling me that I should get an attorney to look at my interest or to have me back out???? So although I have documents filed with the clerk saying the previous agreement was canceled and the purchaser was notified, and now I have a new signed agreement (contingent on those points) that I don't have a right to claim and go to the business to help operate it???? If I can make an appearance and claim ownership, how do I do that. Do I get an Order or injunction, or would the new agreement suffice???
Both notices were mailed certified. The notice of default was send certified and the purchaser refused to pick it up at post office, so the seller placed another copy under his door, and the purchaser ended calling the seller at which time he was verbally notified of the intent to default and cancel. He got angry and hung up.... the notice of cancellation was sent certified mail and due to get there tomorrow AM. If purchaser refuses to get the certified notice, they will personally serve him....
as to the second question. originally I used to own half interest of the business at one point and sold my interest to the other 50% owner because of personal reasons. all parties were friends then and there were no agreements drawn up at the time. therefore, the seller does not have any agreements mandating that the other 50% owner has first right of refusal or anything like that. Because of those personal issues with the other 50% owner, I do not have a current agreement as to how business will operate. The other 50% owner has no idea Im the other buyer.
On a personal note, I started the business from scratch and built it from ground up and that's why I would like to get back in it since the opportunity presented itself and I think it would be profitable for me....
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).