We are selling our business and are signing a contract to purchase. If the buyer drops out of buying, or offers us a lower amount than stated in the contract do they owe us any money or does the mutual indemnity clause keep us from getting any recovery? We are wondering since we are basically givin up our location, clients, etc. and the cost to recover all of that is pretty high.
2007-08-29 11:59:19 · 4 answers · asked by sarah b 3 in Politics & Government ➔ Law & Ethics
If they signed a valid contract, you can sue them for specific performance--meaning they must follow through with the contract and pay you the contract price. Whether you win or not will depend on the validity of the contract and whether there are any "liquidated damage" clauses in it.
"Mutual indemnity" clause doesn't seem to really apply. That would usually mean that you hold them harmless against claims of third parties and vice versa.
Take your contract to a good lawyer for a thorough reading. And, if you didn't have this contract prepared by a lawyer in the first place, be prepared for an expensive lesson. Most contracts drafted by nonlawyers have holes you can drive a truck through.
Good luck.
2007-08-29 12:08:54 · answer #1 · answered by raichasays 7 · 0⤊ 0⤋
Once the contract is executed (signed) then then parties are bound to its terms -- and any party in breach must pay damages arising from the breach.
If the contract is still in the negotiation stage, it gets more complicated.
2007-08-29 12:45:12 · answer #2 · answered by coragryph 7 · 0⤊ 0⤋
Get a lawyer to make sure it's all legit first. Then, after it's all legal and everyone has signed, if they breach the contract they have to make you whole again.
2007-08-29 12:13:51 · answer #3 · answered by Hillary 6 · 0⤊ 0⤋
If it is worth worrying about, it is worth getting a lawyer to review the sale agreements.
For what its worth, I think if the other side fails to pay all required by the contract, you would be entitled to sue.
2007-08-29 12:06:53 · answer #4 · answered by skip 6 · 0⤊ 0⤋