Consumer Law, Warranties Contract Breach

[carigirl]

I sold a business and on the security agreement the buyer owed me money to be paid in 4 monthly installments. He paid the first payment but stopped claiming I sold him a loosing business of which he researched for two months before buying. I was also awaiting some checks from customers after escrow closed of which he received. When asked he told me he received nothing. I called the accounting department for the customer not the purchasing agent, to get the status on the check since it was already 2 months overdue and was told the checks were received and cashed already by the buyer. He is now claiming I broke the contract by contacting the customer and does not want to pay me the money he owes. I only contacted accounting department and never had discussions about business and he never informed me that he received my checks. Did I breach the contract or is he breaching the contract by not making payments? I am trying to hire an attorney as well any suggestions in the Los Angeles area or what can I do to minimize my expenses.

 

[Michael Wechsler]

Sorry for the late reply. I see you've posted elsewhere more recently and found this post.

This sounds to me like the purchaser is upset about buying a business that he can't run profitably and is making excuses that he thinks will get him out of the bad deal. I don't know the details. But if his explanation of your "breach" is confirming the payment of the checks to the purchaser, then you don't need me to tell you what you already know.

Quite frankly, your situation is not unusual. It seems to me that he materially breached the contract and you likely need to start the process by sending him a letter, certified return receipt, of that fact. Chances are you may need to give him time to "cure" the payment defect of nonpayment of the second installment before proceeding but it may not be necessary if he's already stated clearly (make sure in writing) that he will not be upholding his end of the deal. Fortunately you are also secured and you have your remedies. You may need a local attorney to help you, especially since this may be a more complicated matter than just small claims. Best of luck.

 

[Lex101]

There are medium size firms which can competently and effectively represent you in your claim against your buyer. You should get a professional whose specialization in the practice of law includes business law, among other things. This specialization provides it with mastery and experience necessary in winning your case.