Legal Question in Business Law in Georgia

Breach of Purchase Agreement?

I recently bought an existing restaurant. Purchase includes all the restaurant equipment and inventory. I took over the lease of the restaurant at $850/month as well.

The Purchase Agreement states that Seller must provide all book-keeping/accounting info to the Purchaser. The Agreement also states the average daily food sales is not less than $400.

I have been running the business just over a month as same business entity (name, food service, etc).

So far, the Seller has not provided me with the book keeping info. I am becoming curious whether the daily average sales were $400 previously.

The daily sales average was one of the indicators how successful the business was and reason why I purchased the business.

Questions:

1. Since the Seller has not yet provided the book keeping/account info, do I have any legal case to negate the Purchase Agreement?

2. If the Seller provides me with the book keeping info and the daily sales average was less than $400, do I have any legal case to negate the Purchase Agreement and return the business back to the Seller?

Just trying to see if I have a legal case against the Seller for breach of Purchase Agreement.

Thanks!


Asked on 1/14/02, 6:20 pm

1 Answer from Attorneys
Debra Scott The Scott Practice

Re: Breach of Purchase Agreement?

This is a case where legal review of the contract and review of the financial documents you received from the seller prior to closing is needed. Your attorney will need to determine what provisions if any survived the closing and what warranties and representations where made. If material representations made in the contract are proven to be false, you should seek legal assistance from an attorney. You should call the seller and set a date in which he will deliver the documents required under the P&A. If he refuses to provide you with the documents seek professional help.

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Answered on 1/14/02, 8:27 pm


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