How do I take my business back if out buyer has defaulted on payments?
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How do I take my business back if out buyer has defaulted on payments?
My husband and I sold our business about a month ago. The contract states the buyer is in default after 60 days. The buyer made a partial payment for the month before last and has made a few small payments for this and last month. However, he still owes money. What is my course of action to get the business back?
Asked on January 18, 2012 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Sue the buyer--you will sue him for breach of contract. A material breach of contract (and not being paid the purchase price is certainly "material," or significant) can provide a basis for terminating the contract and recovering your business (someone is not allowed to keep something he hasn't paid for) and/or seeking monetary compensation. The best way to do this would be to hire an attorney to help you.
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