What to do if I contracted to purchase a business but that’s not want the seller says was being sold?

The owner provided me with business financial statements. We agreed the price of the business was $108,000. The assets were $30,000 and the equity $78,000. I got a loan and paid but now the owner says that it was an asset sale only and no equity was ever for sale. Should I sue for my money back?

Asked on January 28, 2013 under Business Law, Wisconsin

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If you can show that the agreement between the two of you was that you were buying the equity as well, then you should be able to sue the seller to rescind the sale (return assets, get money back), for a court order requiring him/her to sell the equity, or for monetary compensation (e.g. getting back that portion of the sale price over and above  the asset value). The seller must provide you what he/she agreed to provide and what you paid for. Given how much is at stake, you should consult with an attorney about your options.


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