Legal Question in Business Law in New Jersey

Verbal Purchase of Business and its assets

I purchased a landscaping business, along with all of the customer lists, and assets that came with it from a friend. I spent $22,500 and was told that the customer list was current and the assets were in good condition. I looked over the assets, and it looked ok, but I could not test it since it was out of season. This business was not a registered business at the time of purchase. Once I purchase it, I registered the business. I paid the owner everything but $2,500 (which was owed for a tractor). He still has the title. Once the landscaping season began, and I started using the tools (lawn mowers, trimmers) I kept coming across problems and have had to send to be repaired all assets. I spent over $5000. Also, the customer list given was not accurate. Not all names listed had an account with the previous owner. I don't feel I should pay the remaining balance owed because I was misled, but need to get the title from the previous owner. What could I do?


Asked on 6/05/03, 3:58 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Verbal Purchase of Business and its assets

Real problem due to verbal purchase. You have nothing in writing to verify the seller's representations as to equipment and status of customer lists. I suggest retaining any balance due and also considering a suit for fraud. This may be a difficult suit due to no written documentation.

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Answered on 6/06/03, 10:56 am


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