What is the law regarding a contract of sale for a business?

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What is the law regarding a contract of sale for a business?

I want to sell my business. A lady has wants to buy it for $18,000 and has deposited $1000. Now, a week later, another man wants to by the shop as well for $23,000; he has deposited $1500. The contract says that if the Seller does not sell the business then the Seller must pay the sum of deposited, plus half that sum. However the lady is not accepting this and will not let go of the shop. She said that I am not allowed to do that and must sell the shop to her and that I cannot sell the shop to another person. Is this true and what can be done about this?

Asked on May 7, 2013 under Business Law, Virginia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The sale is governed by the terms of the agreement. If the agreement allows you to refuse to sell to buyer A and instead sell to buyer B, only paying a penalty to buyer A, that is permissible. On the other hand, if the contract does not allow that, then you would have to sell to buyer A. To understand exactly what your rights and obligations are, you need to consult with an attorney who can review the contract in detail with yo.


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