What to do if I contracted to purchase a business but that’s not want the seller says was being sold?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 11 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.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.