Legal Question in Business Law in New Mexico

Business partners split

We sold a business about a year ago to two couples. They did not get along and recently one of the couples paid off the other couple to get out of the business. Initially we financed 230,000 with each one signing a note for 130,000. What are we to do in a case like this? Can we demand full payment of the note now? We have not talked to these people but have heard that the remaining couple is going to make the payments to us as before. Are we supposed t renegotiate the contract? Is is alright for one of the couples to take over or are we supposed to do something to protet ourselves?


Asked on 2/15/02, 7:24 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Business partners split

Unless you had a contract which prohibited a sale without your prior permission, there is little you can do. On the other hand, the promissory notes remain valid from each maker, and the obligation for payment does not change. If payments under the notes are current, there is nothing you can do and nothing you should do. You are not in jeopardy if you are being paid as originally agreed, regardless of who is making the payment.

The party who left the business is still liable on the note, and should there be a default, you are entitled to demand payment from them and take legal action if it is not forthcoming.

It does not appear from you post that you need to take action, but of course the terms of your written agreement control.

If you wish further consultation you may call 1-800-858-3636 if your are out of Albuquerque, or 873-8800 if you are in.

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Answered on 2/16/02, 2:33 am


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