In what state doI sue for breach of contract regarding the purchase of an internet business?

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In what state doI sue for breach of contract regarding the purchase of an internet business?

I purchased a web business for $5000 plus 50% of proceeds for next 6 months. The previous owner has missed numerous deliverables. I, to the best of my knowledge, have all the software but have not received any instructions on how to run the business. Additionally, I am finding errors on the site. The previous owner is from CA and I am TX. At this point I just want my money back, but am unsure of my remedies on this.

Asked on November 27, 2010 under Business Law, Texas

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you signed a contract for the taking over of the business (internet-based or otherwise), check all of the provisions of that very contract you signed because it should contains provision regarding jurisdiction and/or arbitration or mediation. Any of those particular provisions may indicate that you agree the jurisdiction to be in the designated State it mentions (whether it states Texas, California or somewhere else).  Next, if you don't have such a contract or contract provision, it is usually an art form to figure it out.  The law used is the state in which the contract was signed, as the court may see it.  So if the contract was signed (executed) in California, it would most likely be California law.  Otherwise you can sue usually in the state in which the defendant resides and go from there.


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