Did the Sale of Your Business Fall Through?

When you have agreed to the sale of your business, you have an expectation that the deal will close. In some cases, you may run into hurdles, some of which can keep the deal from happening. While some deal collapses may be inevitable, you may be able to sue if the buyer violated your legal rights.

Any time that you agree to sell a business, you sign an agreement with the other party that lays out the terms of the deal. Each party has its own rights and obligations under the contract. The buyer will have their own right to perform due diligence on their business. Sometimes, what they learn in this process could jeopardize the deal. They may try to negotiate or terminate the deal based on developments.

However, buyers do not have an unlimited right to walk away from a transaction once they sign an agreement. The contract describes the conditions under which the buyer has the ability to terminate the deal. The contract will also lay out procedures that they must follow and a potential breakup fee.

It is crucial that your sales agreement clearly spell out the conditions under which the buyer can terminate the deal and what they must do. These terms should be negotiated beforehand. You have a legal right to insist that the buyer follow the agreement. If not, you could insist on the breakup fee or file a lawsuit against the buyer, either for damages or to get specific performance of the sales agreement.

Contact an Atlanta Business Litigation Attorney

If your business transaction has gone bad, you may have legal recourse against the other party if they breached the terms of an agreement. Call Battleson Law LLC today at 470.766.0811 or message us online to get legal advice on your matter.

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