Legal Question in Business Law in Massachusetts
Sold Business - New Owner refuses to pay
I've owned/operated a Bathroom/Kitchen Resurfacing business for over 22 years. I'm, now, disabled and cannot perform the work required. Franchises in the area charge between $47-$85,000 + Royalties and ALL training & equipment is extra. I sold the business to a ''friend'' who also owns an Oil Company and makes $2500.00/week. We had an oral agreement of a $12,000.00
selling price including ALL training, equipment, contacts, suppliers, etc.
Idearc Media, the Advertising arm of Verizon Yellow Pages, had us BOTH sign & fax a form called: Business Sold & Transfer of Account.
This was done on 4/20/2007. He promised to pay me $1000.00/mo. I haven't received a dime & since I'm disabled ...could certainly use the $$$. What to do???
4 Answers from Attorneys
: Sold Business - New Owner refuses to pay
Business is not a friendship. Get a lawyer and sue him.
Re: Sold Business - New Owner refuses to pay
Go to a lawyer and sue him.
Re: Sold Business - New Owner refuses to pay
You will have to file suit against him to get your money and make him pay the bills or to take back the business and sell to another party.
It was a big mistake to only have a verbal contract. It quite frankly hurts your case. But you could still recover, if you take action. The sooner the better, because soon ther will be nothing to sell.
Re: Sold Business - New Owner refuses to pay
It would have been helpful to have a written agreement, but you have to work the cards you've dealt yourself.
The problem is that the amount is relatively small to justify a lawsuit. Litigation can be quite expensive. However, at the outset, you could send him a letter under Chapter 93A to remind him that if you do sue, and do succeed, you could recover attorneys fees and multiple damages. If you are disabled, you may be a sympathetic plaintiff, particularly if there are no negative facts (e.g. the company was losing money, he assumed significant debts owed, negative information was not disclosed to him before he made the offer, etcetera). If he had done due diligence on the business and its books before agreeing to the $12K, you are in a better position.
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