Legal Question in Business Law in North Carolina

Two different people want to buy my store.

From buyer#!:Several weeks ago, I received a verbal offer to buy and $5500 money is held by my agent. Buyer #2: has submitted a contract and $5000 earnest money held by his agent. My Grocery Store is in North Carolina.

My agent has told me that I should consider buyer #2 as a back up offer. (I have not signed anything!)

Legally, could I accept Buyer #2's offer?


Asked on 7/25/08, 11:52 am

1 Answer from Attorneys
Steven Rinaldi Steven D. Rinaldi, P.C.

Re: Two different people want to buy my store.

It depends on whether or not the verbal agreement contains a "no-shop" clause, or a "go-shop" clause. No-shop means that you cannot offer the business' assets/stock to anybody else. Go-shop means you have a certain number of days to obtain a higher price from buyer #2 or buyer #3, but you may owe prospective buyer #1 and his broker a break up fee.

If there is no clause at all (either no-shop or go-shop), then you have an offer that was accepted plus there is consideration. You have a valid contract with buyer #1. I would not terminate it, unless buyer #1 is in breach.

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Answered on 7/25/08, 12:21 pm


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