What happens to a business sales contract if the brokers were jailed on another unrelated matter?

Get Legal Help Today

 Secured with SHA-256 Encryption

What happens to a business sales contract if the brokers were jailed on another unrelated matter?

We are a small business that was sold to another company. The sale was brokered by 2 individuals who were later arrested for SEC violations and are now in jail. The sale of our company was not involved in the illegal activities for which they were convicted. The sale was to be consummated by the exchange of stock which has not occurred. Is the sales contract, that all have signed, legally in force?

Asked on July 14, 2011 under Business Law, Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

When was or is the sale slated to occur? Meaning, has the date come and gone or are you waiting for the date of transfer to happen?

Are any of the parties to the sales contract that has been signed talking about not going through with the sale? If it appears that the buyer and seller still want the sale to go through, there should not be any problems with it happening even though the two individuals involved in the sale were convicted of illegal activities unrelated to your transaction. If the two individuals were convicted of cromes unrelated to your transaction and there are no accustations of any wrongdoing in your transaction by them, then your sale should happen if the buyers are not having a change of heart.

 

 


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption