business was sold to me by someone who wasn’t the owner
I purchased a local car audio and performance business in Thomaston Ga on 12-15-06. I was advised by the attorney of the seller that he suggested we do a bill of sale(to save on costs). In the bill of sale it advises that I am the new owner of the business, the name, all invetory and tools. The funds were paid to the law office. Today a previous owner came to me to advise that the owner I purchased the business from never paid him off for the full owed note of the business. He said he wants to go after the one who sold it to me and does not intend on taking any of my belongings or shutting down my business. He had a bill of sale signed @ our local courthouse from the first purchase of the business. I have a bill of sale, signed by a lawyer and the supposed owner who sold me the business. Does anyone have rights to the items I purchased? I have not signed a lease at the location yet, If I move locations and change the business name can they attempt to take my purchased machinery or tools or cause any financial harm to me? What rights do I have in continuing to operate this business OR having my money refunded to me? I’m sure he has already spent it all!
Thanks for any advise!
Re: business was sold to me by someone who wasn’t the owner
I agree with Mr. Riddle that your situation is beyond this forum and you should seek advice ASAP from a local business attorney. However, I will tell you that generally, the recourse is probably not to take your property or shut down the business. It would most likely be a breach of contract issue between the signatories to the relevant contract. I.e., they can sue the seller, but take no action against you.
If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.
The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.
Glenn M. Lyon, Esq.
MacGREGOR LYON, LLC, Business Attorneys
1100 Peachtree Street, NE, Suite 640
Atlanta, GA 30309
Re: business was sold to me by someone who wasn’t the owner
Your questions are far beyond the scope of this forum and what can be answered in a paragraph. Answers will also depend on a review of documents. Since this is your business, you need to see a lawyer to straighten it all out. Had you done so in the beginning, a lawyer would have known to check into these issues.
Scott Riddle
Scott B. Riddle, Attorney
Suite 1530 Tower Place, 3340 Peachtree Road
Atlanta, GA 30326