What are my rights if I had a verbal agreement to sell my business that has not been honored?

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What are my rights if I had a verbal agreement to sell my business that has not been honored?

The buyer offered me cash upfront before we had signed a contract. I refused and said that I wanted the contract first. He promised he would get it done the following Monday. I wanted to have a lawyer review it. So in good faith I allowed the buyer to go into my business and do a little painting and cleaning. Over the next several weeks he kept ducking me and saying that his lawyer was supposed to get back to him. Now he says he’s only paying 1/3 our agreed upon price and refuses to leave the premisis. Can I simply change the locks on the door and kick him out? He is not a tenant; there was never any lease and the rent for the business I have been paying myself. The utilities are still in my name.

Asked on February 16, 2013 under Business Law, New York

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

So long as you have no written agreement to sell your business to the third party that you have written about then under the laws of all states you can legally change the locks of the building since the sale has not transpired. I suggest that you consult with a business attorney for further help.


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