Legal Question in Business Law in California

late payment

Sold a business in Sausalito to a person who had agreed to pay on a monthly basis. He has not paid for the last several months, simply stating that ''business has not been good''. No promise to pay within a certain period was ever discussed, and I really need the money. I have spoken with him and so advised. Is it time to become legal, so to speak, or am I forced to wait until he decides to pay? What he has paid, though, has been interest only. This is a quite small amount, and I feel I am suffering.


Asked on 5/28/08, 7:02 am

2 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: late payment

i would have to review the sales agreement and escrow in order to assist you specifically. Generally, the note may have an acceleration clause. If so, you may be able to obtain the full balance or foreclose against the collateral. Please contact me if you have any further questions.

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Answered on 5/28/08, 8:20 am
Daniel Harrison Berger Harrison, APC

Re: late payment

If the sum owed is small enough, you should strongly consider small claims. You also need to determine what exactly you sold (assets or the entire business), who owes you the money, and the amount owed. The law usually provides that, absent a stipulated time for payment, then payment will be due within a "reasonable" amount of time. What "reasonable" is will depend on the circumstances and what the judge or jury thinks it is.

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Answered on 5/28/08, 10:25 am


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