Legal Question in Business Law in California
Bought a business for $1 the guy was retiring. We only obtained the client base from the business. We did not receive any other asset from this business. We already had an existing business doing the same type of work, so we did not need any extra assets. We bought this 2 1/2 years ago. What else should have been done to make sure we are protected? We could not afford an attorney at the time so we handled the transaction on our own.
2 Answers from Attorneys
I'm not a transactional business lawyer, but it seems to me that you might want to register the old business name either as a fictitious business or in some other way to protect it from being used by others.
Without knowing what agreements you executed or what you want to be protected from it is hard to answer you question. It does not seem that you "bought a business for $1" or even a client list. Unless there is something more there seems to be a lack of consideration. It could be argued that it was gift or referrals. I would think the paper or CD with the clients' names on it would be worth more than a dollar.
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