If we have an offer on our small business for $100,000 with $1,000 down, and 70,000 due at closing with the balance owner financed for 2 years at $1000 per month, how do I handle it if he doesn’t pay or pays late?
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If we have an offer on our small business for $100,000 with $1,000 down, and 70,000 due at closing with the balance owner financed for 2 years at $1000 per month, how do I handle it if he doesn’t pay or pays late?
Asked on September 18, 2015 under Business Law, South Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
You sue him that is how you recover money from someone if they breach a contract by not paying when required to do so by the terms of the agreement. A breach of contract case like this would be fairly straightforward you just need to demonstrate the terms of the contract and allege you were not paid when required if he can't then prove that he did pay you, you would normally win.
Also
1 Require in the contract that the big, $70k payment be by certified check or wire transfer and if wire transfer, verify the transfer before transferring ownership--that way, you know you get the main payment.
2 The following $29k of payments should be guaranteed by a person e.g. the new owner, not just be an LLC or corporation, since it's too easy for someone to walk away from obligations if he/she is not personally liable for them.
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