Legal Question in Business Law in Texas

I just wanted your thought on this legal issue. since my mom is curious to know generally what the law actually say on this issue, My mom brought a shop from an owner who told her that the shop revenue was about $4350 each month so she sign a contract called a Bill of Sale to buy the shop from the owner for $38000 and paid the owner in full. However the lease was still under the original owner name and my mom didn't sign the contract with the lease landlord yet. After a few days my mom noticed that the store barely has any customer at all so the actually revenue of the shop is not $4350. But when we met with the landlord he said that in the leasing contract he has with the original owner the owner is not allow to take any of the shop item until the leasing contract has ended, but since the original owner sign a Bill of sale contract with us stating that all the belonging in the shop belonged to us and we can do whatever we want with it. This conflicted with the leasing contract the landowner had but that leasing contract was not under our name but the original owner name. So my question is can we actually take anything out of the shop? Also can we win the $38000 we paid to the original owner that signed the Bill of Sales with us?


Asked on 6/30/11, 6:29 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say the following. Without seeing the Bill of Sale and lease, it's not possible to answer your questions. In general, if the seller of a business misrepresents the revenue, this can be grounds to rescind the contract and recover your money back. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 7/01/11, 7:53 am


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