Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.
Question: In selling a business, current customers of the business have security deposits that we will need to transfer to the new owner. I am looking for a contract or paragraph to insert into the sales contract that releases the seller of any obligation or liability of the deposits once they are delivered to the new owner of the business.
Response: Paragraph: "Seller and Buyer (new owner) agree that customers have paid security deposits totaling (insert the amount) to the Seller. As part of the sale, the Seller shall transfer the security deposits to the Buyer. Thereafter, the deposits will become the sole liability of the Buyer and the Seller is released from further liability on the deposits. Buyer shall give notice to the customers that their deposits have been transferred to the Buyer as part of the Sale and the Seller no longer holds the deposits and that any concerns regarding the deposits must be addressed to the new owner. By signing the sale contract, Buyer and Seller agree that the Seller has transferred the deposits as stated in this paragraph to the Buyer."