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rvlaw, Attorney
Category: Business Law
Satisfied Customers: 8386
Experience:  NYC Trial Attorney 30+ years; Law professor ; BUSINESS LAW; CONTRACTS; TORTS; Arbitrator
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I made a contract to buy a business. Due to

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I made a contract to buy a business. Due to insufficient funds I can not buy it anmore. I would like to breach contract. In contract there is a clause says Buyer(Me) will pay seller $1000 in case of breach of contract. I had made deposite of $15,000. Can I get my rest of the deposite back?


No. I'm afraid that a court will not permit return of the downpayment. The 1,000 amount is what we call "liquidated damages" in case of breach of contract from the day of the contract with the downpayment FORWARD as you continue to pay. In other words, instead of the seller being able to prove his actual damages as allowed by law, it was agreed that he would just get 1,000. It does not mean you can get the 15K back.


Customer: replied 9 years ago.
Reply to rvlaw's Post: Thank you Rich
So what should I do with this situation?
How should I get my money back?
Customer: replied 9 years ago.
The Clause says this.
Liquid Damages: Default hereunder shall entitle aggried party to the sum of $1000 dollars as liquidated damages for breach of this contract in addition to repayement in full of any sum paid here undere as aforesaid.

OH you didn't tell me the whole clause. GREAT!

Write a letter saying you cannot complete the deal and ask for $14,000. Except the wording of the clause is a bit contradictory. It should say "pay 1,000 EXCEPT .................WILL BE REFUNDED. I don't like the words "in additon to"


rvlaw and 2 other Business Law Specialists are ready to help you
Customer: replied 9 years ago.
Thank you Thank you thank you so much Rich I am very happy to hear this. Thank you so much
Any advise on if I write a letter and he does not response? Hire lawyer? or what?
Thank you very much again for your help
I know I am asking too many questions for so little amount
Thank you once again

When you write the letter, say "Please remit within seven (7) days from your receipt hereof." If he doesn't'll need to see a lawyer.


Customer: replied 9 years ago.
Thank you rich. I shall do that and also contact the lawyer. can you tell me how long can this take ? I mean once I get lawyer and court case and stuff? (assuming he does not refund my money after I write him letter)

This is my last question Rich
thank you very much for your help
also I am in NJ are you near by? I mean if I can come to you or contact you to deal with this guy? let me know thank you

Thanks for your confidence but I am NY attorney only.

Don't know the exact calendar backlog in NJ, if any, but count on up to a year. I'm a trial lawyer and in NYC it's much worse :-(


Customer: replied 9 years ago.
Thank you very much rich . you have been a big help to me thank you
My pleasure