Sale of Business Disputes
The sale of a business is supposed to be an exciting time for a new buyer and hard work finally realized for the seller. However, often times, disputes arise from the transaction that must be litigated. When such a situation arises, it is important that you are represented by skilled attorneys that understand the complexities of commercial transactions.
Issues that may arise after the sale of a business can include claims for misrepresentation or fraud. For example, a seller may have misrepresented important facts about the business to the buyer prior to the sale. These material facts may have caused the buyer to believe the business was a better investment than it really was or induced the buyer to purchase the business altogether. If such misrepresentations were intentional, then those misrepresentations were fraudulently made. The material facts that a seller may have misrepresented can include: the solvency of the business, the finances, the volume of sales, the customer base, the earnings, the title of assets, the value of assets, debts owed, compliance with laws and license requirements, among other things.
In addition to the above, a buyer may have claims against a seller for breaching the business sale agreement. This can include claims that a seller breached a non-competition clause, an agreement to not solicit former employees, or an agreement to train the new buyer in how to run the business after the purchase, among other things. If this is the case, the buyer may be entitled to money damages or a court order enjoining the seller from continuing certain prohibited activities.
Likewise, a seller may have claims against a buyer for the failure to abide by the business sale agreement. These claims can include: the failure to make installment payments when due, the failure to pay creditors as agreed to, the failure to discontinue the use of the former business name, misrepresenting information regarding the seller to former employees and customers, among an array of other things.
Whether you are a buyer or a seller in a business sale agreement gone wrong, the attorneys at the Piccuta Law Group can help. Our attorneys have extensive experience with business sale agreements and commercial transactions. Contact one of our attorneys today to discuss your case.