Legal Question in Business Law in Arizona

Is there a time limit?

On November 28, 2005, we sold a business to a man who has waited until April 2006 to claim that we did not deliver all of the business assets to him. He claims that we did not deliver even half of them. These assets are display racks that are placed at locations covering 5 states... gas stations, rest areas, etc. These racks must be filled every 2 weeks to maintain the business or property owners will remove empty racks. He personally inspected the racks during his training period and was very satisfied with the amount he'd purchased... which was more than stipulated in the contract. This is apparently an attempt for him to get out of paying $20,000 due in monthly installments of $1,000.

My question is... is there a limit to the amount of time in which he can dispute the assets delivered to him? Especially if there wasn't a time limit placed into the contract?


Asked on 4/03/06, 5:44 pm

2 Answers from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

Re: Is there a time limit?

The purchase contract would be controlling, and would provide an answer. If there is no provision in the agreement, then a court may imply terms that are reasonable. I would argue that there is no time for him to now claim that he did not receive all the assets he purchased. If you are correct and the purchaser is just looking to avoid paying the purchase price as promised, I strongly recommend that you retain an attorney and bring suit for the $20,000 owed. If the purchaser is in default on his promise to pay, take action immediately!!

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Answered on 4/03/06, 8:21 pm
James Jenkins Jenkins Law Center PLC

Re: Is there a time limit?

I am wondering how we might give you an opinion on what your contract says without having the contract in front of us. I am presuming you took the costly approach, representing yourself in the sale without an attorney, so I cannot presume your contract would have standard provisions an attorney would place in the agreement, such as that the buyer had a specific inspection period, or that the buyer had already inspected and approved the equipment.

Consult with an attorney and show him or her the contract and all accompanying paperwork, correspondence etc. to get a responsible opinion.

Your buyer should not be able to do what you have described if the contract was properly worded.

Good luck,

James D. Jenkins

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Answered on 4/04/06, 11:11 am


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