QUESTION
I bought a business which was grossly misrepresented. The sellers told me things which are not true. Do I have any legal recourse?
Asked on Nov 06th, 2017 on Business Law - Texas
More details to this question:
Bought a business which was represented as having a 3000 cash flow, being mostly absentee run with the owner only needing to show up once a week for an hour or two, and that all employees were paid based on commission. I find out they have two of the three employees working for a guaranteed daily rate, not commission, we are losing money everyday, and the business is distressed needing lots of help. It's not what was represented to me.
1 ANSWER
You may have a claim for fraudulent inducement, which is based on ,syrtos; misrepresentations of fact on which you reasonably relied by entering into the purchase contract. If you succeed on this claim, you should be able to rescind the contract and get your money back, or alternatively recover the damages you suffered due to the fraud, i.e. the difference in value between what you got and the value it would have had if the representations had been true.
Answered on Nov 07th, 2017 at 2:18 PM