Legal Question in Business Law in New Jersey

One year ago an individual purchased 33% of my business for the sum of $5,000. He paid $2,500 with the other $2.500 available as needed. Recently, with no advance warning, he decided he no longer wanted to be part of the business and requested his money back. That money has been long spent and the business does not have $2,500 in disposable income to pay him. I'm wonder if he is even entitled to the money back. What is the best course of actions?


Asked on 3/26/16, 6:41 pm

1 Answer from Attorneys
Frank Natoli Natoli-Legal, LLC

There is no right to get his money back unless the terms of the purchase agreement allow for it, or if there is some allegation of misrepresentation or fraud, etc.

You really do not have to do anything at this point as it is for the other party to take some action. If they sue you, it will likely be in the small claims court, so just deal with it there. If, however, you want to be proactive and send some kind of response you will have to invest in legal help.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Our firm is now referred by the American Bar Association (see under the New York section):

http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Answered on 3/27/16, 10:16 am


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