Legal Question in Business Law in California
need advice
I sold my hair salon located inside a mall and few months after i sold it the mall chose not to have the shop there anymore and now she is angry and thinks about taking me to court to get her money back
2 Answers from Attorneys
Re: need advice
Did you make any promises to her in regards to the lease? Did you disclose the lease? Depnding on the facts you may be succesful in a lawsuit.
Re: need advice
The lawsuit, if one is brought, will be won or lost on the basis of disclosure. If there was anything about the lease that you knew, or should have known, of a negative nature, and didn't disclose, you're in a bunch of trouble. Undisclosed matters might include (1) that the lease was about to expire and might not be renewed; (2) the lwase was not assignable to a new owner; or (3) there were complaints from other nearby tenants about odors from the salon, which were contrary to the lease and gave the landlord a reason to terminate the lease before its expiration.
If you fully and accurately disclosed all negative factors known to or discoverable by you, you should be able to win a lawsuit.
I should add that you not only need to have disclosed all the negative information, you'll need to prove to the judge or jury that you made those disclosures. Hopefully, the disclosures were made in writing in your sale agreement. If they were just made orally, it may boil down to "he said, she said" and the jury may tend to believe the buyer, based on the rreasoning, "she wouldn't have bought the shop if she knew the neighbors were on the warpath" (or "the lease was about to expire").
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