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?
1 Answer from Attorneys
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.
Related Questions & Answers
-
We sold our business and the partners are not getting along We sold a profitable... Asked 2/09/02, 12:24 am in United States New Mexico Business Law
-
Employee Hiring tax law There have been adds in magazines & papers telling... Asked 3/28/01, 10:33 am in United States New Mexico Business Law
-
Investment in a Limited Liability Company There is a Limited Liability Company in... Asked 2/23/01, 11:36 am in United States New Mexico Business Law
-
Gift circle Is it legal for a business to participate in a gift giving circle... Asked 12/31/00, 2:02 pm in United States New Mexico Business Law
-
Gift tax Can someone become involved in a gifting circle if they own a business? And... Asked 12/28/00, 11:35 am in United States New Mexico Business Law