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I sold a store to a buyer on a installment. The agreement is that he will pay me monthly installment until the payment is paid off and then I will transfer the store into his name. It has been more than 6 months he has only paid me half of a months payment. He made up several excuses over the past 6 months. Re has not paid rent and the building owner has locked him out of the building. What will my legal grounds be? how do I proceed in recovering the rest of the balance? thank you -Michael
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You should have an experienced attorney review your contract with the buyer to explore your rights. One option may be to seek a judgment against the buyer for the unpaid balance, but the great likelihood appears to be that he does not have any money anyway -- so that may be a dead end. Another option may be to take over the business again, based on some security interest you may have retained in its assets. You may not want to do that -- you did sell the business after all -- but it may be a good way to recoup some of the losses incurred from the buyer's failure to honor his contract.
Another concern here, of course, is that you may still have some liability on the lease. You do not say whether your lease was simply assigned to the buyer or if he negotiated a new lease with the landlord.
Again, a lawyer experienced with such transactions can review all the relevant documents to give you a better idea of your options and your liabilities.
Good luck,Sean
Answered on Dec 02nd, 2015 at 5:43 AM