Legal Question in Credit and Debt Law in Texas

defualt on business promissory note

I owner financed a business with a promissory note and monthly installment payments. The individual purchasing is now 2 months behind. We cannot take back over the business due to a non-compete clause in the contract.

His balance is $5800. The contract states we can demand balance if deafult or hav him pay attorney fees.

Is it worth an attorney or is there a way we can take the business back?


Asked on 4/10/06, 3:41 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: defualt on business promissory note

You are going to have to look to the language in the documents of sale as to what relief may be available to you.

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Answered on 4/10/06, 3:53 pm
TC Langford Langford Law Office

Re: defualt on business promissory note

You need to carefully analyze the buy-sell contracts you signed on this transaction. If his failure to make timely payments on the note trigger a breach of the contract, then the non-compete may also be terminated.

You need to make a financial decision regarding whether it is worth your while to retain an attorney to either collect the money owed to you or to retake the business. Contact an attorney in your area, and pay the attorney to review the contracts and offer his/her opinion as to your options. A few hundred dollars here would be a good investment.

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Answered on 4/10/06, 3:54 pm


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