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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10629
Experience:  30 years of corporate, litigation and international law
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a new questions, on july 12, john and i entered an agreement

Customer Question

a new questions, on july 12, john and i entered an agreement that i sell a store to him for certain amount of money. and John paid me $10000 for deposit on july 13. We had verbal agreement that he will sign with landlord on july 26, and pay rent on Aug 1 and start him business then on.
Submitted: 6 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 6 years ago.

bizlaw :

Are you asking if this agreement is enforceable?

Customer :

no, i need to add that there is no closing date written on the contract. just by verbal agreement to close on Aug 1

Customer :

On July 26, however, John changed his mind, he told me and landlord that he does not want the business and refused to sign the lease with landlord. So landlord still keep lease with me.

bizlaw :

He is not liable on the lease because that agreement had to be made with the landlord. Even though the agreement was not in writing, the payment of the $10,000 deposit on the purchase price is important evidence of the existence of the contract. Your damages would be the difference between the price he agreed to and the price you are able to sell the business for. His failure to close will be a breach of the agreement but you may not be able to immediately quantify the damages. You will not be able to just keep the deposit because there was no liquidated damages provision so you will have to prove your damages in court.

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