What can I do if I sold my business and the buyer has stopped making their installment payments?
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What can I do if I sold my business and the buyer has stopped making their installment payments?
I sold my business about 1 1/2 years ago for $45,000. The buyer and myself, both signed a contract detailing payments, assets, etc. I now reside in another state. The new owner has paid a total of $3,000 in the agreed upon $750 per month payments but has stopped. I have talked to the new owner, emailed him and contacted through social media. Each time he has responded that he will resume payments soon. I sent a demand letter via certified mail October 12, 2015 telling him that he had 30 days to get back on track. He said that he would catch up his payments. After receiving no correspondence for 30 days, I sent him and email requesting a status update. He did not respond. What are my legal options at this point?
Asked on December 3, 2015 under Business Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Your option is to sue him for breach of contract (for violating his obligation to pay you, as set out in the agreement of sale). Once someone misses payments due under a contract, you have the right to file a lawsuit and can generally sue for the full amount due (i.e. the entire remaining balance), rather than only seeking the missed payments.
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