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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41221
Experience:  Run my own successful business/contract law practice.
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What would be a cause of action against C in this fact pattern

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What would be a cause of action against C in this fact pattern: A sold business to B and received a promissory note from B for the balance of the amount due. B eventually defaulted and, without giving notice to A, sold the business to C.
Submitted: 8 years ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 8 years ago.
<p>C can be sued for fraud if it had knowledge that the business was already sold to A. If C is a bona-fide purchasor for value, then it comes to superiority of title and ownership. Generally the first one to record their interest (new name, new owners, new controllers) wins.</p><p> </p><p> </p><p>Sincerely,</p><p> </p><p>Dimitry Alexander Kaplun, Esq.</p>

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