Selling a business - how to guarantee payment?

Discussion in 'Legal Issues' started by fbn, Dec 12, 2012.

  1. #1
    My business partner wants to cut me out of our business. I have agreed to sell to him, and I am ok with monthly payments over the next 10 months.. However what can I do to guarantee he pays me?

    The contract reads that we "agree to dissolve the business **** which entails signing the correct dissolution legal documents **** Even before the documents are signed **** will be considered dissolved as soon as this contract is signed by both parties.

    It continues to say how much he will pay me each month for 10 months.

    I am ok with the deal we made, and I was about to sign it and send it to him but someone pointed out to me that he could skip out on paying me and I would be screwed. Sure I could sue him but the cost of doing so would not likely be worth it. Its only a small business.

    Advice? I want to do the deal I just dont want to be screwed if he decides ok business is mine sue me...
     
    fbn, Dec 12, 2012 IP
  2. dscurlock

    dscurlock Prominent Member

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    #2
    There are not guarantees...

    Convince him to pay you out upfront, and let it be over...but he is not going to want to do that
    because then his is taking on the risk of paying you upfront if he should need the money for something....

    If you do not think it would be worth suing him, then is it really worth getting small $$ for the next 10
    months? and you really do not have to sue him...if he skips on the contract, then put a lien
    on anything he has, if you guys do not have a corp, then you can put a lien on his assets...

    If you want a guarantee, get him to just pay you out....

    BTW if you are agreeing to dissolve the business, then that means the business is terminated..opps, no more business...
    if your partner is just running you out the door, then it should be like "we agree to dissolve our partnership" with the following terms...
     
    dscurlock, Dec 13, 2012 IP