QUESTION
Bought a business, seller failed to disclose relationship with employees
Asked on Feb 22nd, 2016 on Business Law - Texas
More details to this question:
My wife and I just recently bought a spa. During the course of negotiation, we had a feeling that the owner and her employees are related. We asked them but they all declined. When we took over the business, the old owner went opened another spa on the other side of the town and all the employees left out spa and went worked for her. They still do not admit they are related. However, we found their facebook accounts and they were all posting photos of family gatherings together where we can clearly identify they are mother and sisters. Is there any legal recourse we can do? Thanks
1 ANSWER
1 Award
The answer to your question requires a review of your Purchase and Sale Agreement (PSA) with the prior spa owner. If there were no express representations about this matter in the PSA and the PSA did not contain a non-competition / non-solictation provision, then it will be very difficult to seek compensation or rescind the transaction.
Answered on Mar 11th, 2016 at 8:44 AM