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AttyHeather, Lawyer
Category: Legal
Satisfied Customers: 677
Experience:  15 years law practice experience
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I sold my company but before closing and change name in

Customer Question

I sold my company but before closing and change name in title company, buyer take over the position and run for 3 weeks. however. buyer stop the transections and asking us to return all deposit. We sold $95000, and buyer already pay to the title 45000. Can I ask for holding all fund as the breaking contract fund..." Buyer is asking to return all money
JA: Employment law can be complex. But don't worry -- you're in good hands. The attorneys have a lot of experience with this, and it would be my pleasure to match you with the best fit. Have you talked to a lawyer yet?
Customer: not yet
JA: Anything else you think the lawyer should know?
Customer: buyers told us they have business license and all legal document. Now they said they don't have business license, no city permit, and no tax ID. They are illegal, and said they will not run a illegal business and will get off tomorrow
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Submitted: 1 year ago.
Category: Legal
Expert:  AttyHeather replied 1 year ago.

Hi, I'm Heather, and I've been a practicing attorney for 15 years, and I'd like to assist you for informational purposes.

You should have a contract that you signed and the buyer signed for the sale of the business. If you have entered into the contract, and the contract allows the buyer to back out of the sale, then the buyer will be able to get their money back. However, if the contract does not allow the buyer to back out of the sale, then the buyer is in breach, and you need to instruct the title company to not return the funds to the buyer, because they are in breach. If the buyer has already been running your company for three weeks, then it seems like it is a done deal. Hopefully, you can review your contract and see which provisions apply here.

Customer: replied 1 year ago.
we have sign contract, it had mentioned it was selling AS it. it does mention liquidated damage , but as we know that is only 3% and no more mentioned about if buyer can or cannot back out of sale.
Customer: replied 1 year ago.
they should following the contract to turn in document to the title company and take over the lease on 6/15, but as we know, they didn't do any until three weeks later and told us want to stop the transection. And today notice us tomorrow will be out of the restaurant. If they leave tomorrow, can we run and take over the restaurant before we have settle the deposit fund issue?
Customer: replied 1 year ago.
In the contract it does mention buyer take over the position on 6/1/16.
Expert:  AttyHeather replied 1 year ago.

Does your contract have a provision about refunding the deposit money in the event of a breach?

Customer: replied 1 year ago.
No, I don't see that in the contract
Expert:  AttyHeather replied 1 year ago.

Since there is only a liquidated damages provision, it would seem that if they buyer is in breach, that you would be entitled to the liquidated damages that the contract states. Does the contract liquidated damages provision state that you only get the 3 percent, or does it state that you can opt for actual damages?

Customer: replied 1 year ago.
I need to ask my contracter tomorrow, thank you for your help and if I have more information , will contact u. If I hire u for the case, how much u charge for it, and how can I contact u? I need to sleep and get ready for tomorrow, because the buyer just sent me an email at 10 pm saying the will just leave the key in the restaurant , God ....
Expert:  AttyHeather replied 1 year ago.

I hope it is going ok for you getting your restaurant back in order. Let me know if I have answered your question.