How to collect on a defaulted payment?
Question Details:
A friend sold his T-Shirt company with the stipulation in the contract that if they buyer defaulted his monthly payment that my friend would reclaim the property. How does he go about getting his company back without getting a lawyer involved? What are his options?
Contracts are enforceable; if the contract has been breached by the buyer, the seller can sue for monetary compensation (i.e. the money owed) and/or for "specific performance"--i.e. for a court order enforcing the term of the contract requiring the return of the business. If your friend is suing as an individual, he could bring the legal action himself, though that is *not* advised, by filing a complaint in the appropriate court. Havin a lawyer will greatly increase his chance of success.
If the seller was not your friend personally, but rather a LLC or corporation he owned (e.g. an LLC of his sold its name, assets, etc. to the buyer), then he will need an attorney; a non-lawyer may not represent a limited liability company or corporation.
