What to do if I signed a marketing agreement for a business advisor to help me sell my business but after a week tried to cancel?

I sent a certified letter. I read the fine print of the agreement and ran it past my business partner who did not sign it and saw that it contained things that we did not talk about or agree upon. He said that he would cancel but I never received anything back. He never did anything. He said he contacted his lawyer and that they think that I have a buyer and I don’t want to pay a commission, that my business partner can sue me and that I could just deny any offers that he brings. I don’t know what to do now. I want to sell my business but feel like this guy will try to get a piece of it even though he has never done anything.

Asked on November 7, 2013 under Business Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If  you signed the agreement, you could only cancel it:

1) if the agreement itself contains some cancellation clause, term, or provision, and only if you follow whatever its requirements are; 

2) it the advisor lied  to you in some way, or otherwise committed fraud  (made a knowing misrepresentation) to get you to sign; or

3) if the advisor himself breaches (violates) the agreement in some material (significant or important) way.

Otherwise, you would typically be held to the terms of whatever you signed.


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