Legal Question in Business Law in Virginia

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Virginia

Hello - any help is appreciated.

One of our client accounts is past due - going on 5 months. They purchased equipment and had us set up and install it. They gave us a key to their office during that time (and we still have it) and have told them that if they cannot pay, we will have to take back the equipment. Do we have the right to go into their office and take the equipment back? Even if they didn't reply to our messages and calls, are we allowed to since we have a key?

Thanks.


Asked on 12/15/10, 12:31 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

s a Franchise Attorney I advise you to show the entire sales contract to a good business attorney. Did you take and file a security interest in the equipment? There is normally no right to repossess unless it's clearly spelled out in the contract and a number of other steps have been taken. If you don't have a clear legal right to repossess, then you definitely don't want to enter their premises to take back the equipment as this would subject you to both civil and criminal liability. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/20/10, 1:39 pm


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