Legal Question in Business Law in Missouri

Hello,

I would to see if someone can advice me with a situation in here, I want to buy a gas station business with the property just the business, I signed the agreement with the seller on the 07/01/09 and give him a deposit of $15,000.00 and he asked to sell the business for $140,000.00.

I signed the agreement and gave him the deposit on that date then flew overseas the next day for 5 weeks to a different country, got back on 08/08/09. start working on the licenses and the paper work, last week I met with someone who has experience in this business and told me that I am paying way tooo much for this business itself, he calculated for me the business and came up that the business worth only $75,000.00 or $80,000.00, because when I asked the seller how much he makes monthly on inside sales he said $39,000.00 and his profit is $10,000.00 monthly, but he claims only $2,500.00 or $3,000.00 on taxes every month, so I found out that really this business is not worth $140,000.00 and I want to cancel it today and I wrote a cacellation letter to him stating that he never provide us with the documents of a business such as tax return also the business is not worth what we are going to pay for. He took the cancellation letter but he doesnt want to give us our money back.

I would like to know what should I do now? is it right what he is doing to take all my money? how can I get all my money back? it is $15,000.00 it is not alittle money.

I hope to hear from you some one soon.

Thanks


Asked on 9/09/09, 5:17 pm

1 Answer from Attorneys
Anthony Smith LawSmith

Your situation will be somewhat affected by the manne ris which the information was communicated. If you have awriting wherein he states that his monthly gross sales and net profit were significantly more thatn he reported to teh taxing authorities, you may have more problems than you know. You, as the new owner of the business, may get hit with a large back tax bill from the state and the federal government. Hopefully your contract addresses this situation. Since you have information that you were misinformed by the seller as to past revenue, you should not make any more payments to the seller, but rather put those funds into escrow.

The beginning of your posting was confusing. Are you buying the property

AND the business or just the business? If it is just he business, what exactly are you paying for?

There are too many unaswered questions for anyone to give you a certain answer as to whether you can get yrou $15,000 back. It is too important to rely on a free question service. Lawguru offers a paid component wherein an attorney will take more information from you and give you a clearer picture of your legal options relative to your postion.

Good luck

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Answered on 9/14/09, 1:35 pm


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