Legal Question in Business Law in Kansas

verbal contract for sale of business

I am in the process of purchasing 2 small businesses in our area. The seller and I have a verbal agreement for terms of the sale. Is this contract legaly binding to the terms set forth by the seller and the buyer. The applications for all but one of the necessary licenses have been processed, of which it can not be done until after others have been received. Long story short since we the buyers have been doing our part of the sale agreement, can the seller back out at any given point, or is his verbal agreement of sale legaly binding.

thank you


Asked on 6/24/06, 10:19 pm

1 Answer from Attorneys
Jeffrey Carey Carey Law Firm, LLC

Re: verbal contract for sale of business

Unless verbal agreements violate a principle called the statute of frauds they are enforceable. If there is a real estate conveyance involved it must be in writing to be enforceable. Any agreement that cannot be performed within one year, furthermore, is not enforceable unless it is in writing. The problem with oral agreements is always proving what was actually agreed upon. I would not suggest purchasing two businesses on a handshake. You should get signed agreements, preferably with the assistance of a business attorney.

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Answered on 6/29/06, 11:15 am


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