QUESTION

If we bought a business and the seller had a debt with the landlord, are we responsible for any debt contracted by the seller with the landlord?

Asked on Dec 13th, 2013 on Landlord and Tenant Law - Idaho
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4 ANSWERS

Depends upon what your purchase contract says. If the contract is silent and/or you did not know of the debt then the contract can be voided as it was indirectly including terms you were not aware of.
Answered on Dec 18th, 2013 at 10:27 PM

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Criminal Defense Attorney serving Alhambra, CA at Francis John Cowhig
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It depends on the sales agreement and whether your purchase of the business all liabilities as well as the assets of the business.
Answered on Dec 18th, 2013 at 10:27 PM

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Litigation Attorney serving Irvine, CA at Law Office of James A. Anton
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If you bought the stock of the company that incurred the debt then you may be liable. If you only bought the assets then probably not. The buy sell agreement should address this situation. You should consult legal counsel.
Answered on Dec 18th, 2013 at 10:26 PM

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Commercial Contracts Attorney serving Boise, ID at Peters Law, PLLC
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Maybe. Did you buy stock or assets. If stock, then definitely. If just assets, you are not legally liable. If you bought the LLC, that would be the same as buying stock. However, if you bought assets, did you buy the remaining portion of the lease? If so, you probably bought his interest in the lease, meaning the past dues. Finally, assume that you only bought the remaining portion of the lease. If the landlord did not consent, then he is not obligated to honor your agreement and can demand that you pay the back amount to stay there. If you did not talk with an attorney before you bought the business, talk with one now. If you did consult with an attorney, ask him or her about the issue.
Answered on Dec 18th, 2013 at 10:19 PM

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