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Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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I am in the process of selling my business in Colorado. At

Resolved Question:

I am in the process of selling my business in Colorado. At one point I found a potential buyer who was very interested and was willing to sign an LOI if I was to draft th Purchase agreement. From what I was told by my business broker the fee for drafring an APA ranges between $7,500 and $10,000. So I inserted a claus in the LOI and let the buyer know that should the sale falls through for any reason he will be liable for half of my legal expenses. Well the worst had happened and now the buyer refuses to pay. Can I file a small claim? And if yes is it the best way to collect?
Submitted: 7 years ago.
Category: Business Law
Expert:  Ellen replied 7 years ago.

Since your claim is under $7500, it is within the small claims jurisdiction in
Colorado. You can file in small claims without a lawyer for breach of contract. Click here for the forms.
Customer: replied 7 years ago.
He's trying to say that the LOI is none binding is it true? And since he is in FL does he need to fly out here to contest?
Expert:  Ellen replied 7 years ago.

An LOI is a statement of intent to come to an agreement. As it is an agreement to agree it is typically not binding. However often what is titled an LOI is in actuality a contract. Therefore whether your LOI is binding will depend upon what language is actually in the LOI.
Customer: replied 7 years ago.
I am ready to accept I just need to know if I can file small claim in CO since the buyer is in FL
Expert:  Ellen replied 7 years ago.

Yes you can The basis of the Colorado jurisdiction is that the subject matter of the agreement - the business- is in Colorado. Good luck.
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