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Thread: Sale of Business

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    Sale of Business

    I have sold my business in January this year. memorandum of Agreement was drawn up by a lawyer, and signed. The Purchaser put their son-in-law in the shop to run it, and from the word go this guy was a disaster. Changed suppliers so product quality suffered etc etc. The terms of the agreement was a deposit and 12 monthly payments. The son-in-law has now managed to drive the business into the ground in a span of two months. My old clients stopping me in town complaining about the shop. They have now defaulted on the first payment. I have given them 14 days notice as per the breach clause in the agreement. But what happens if they dont pay after 14 days?

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    Diamond Member Justloadit's Avatar
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    What are the terms of agreement under breach of contract?
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    Quote Originally Posted by Justloadit View Post
    What are the terms of agreement under breach of contract?
    According to the breach clause the agreement will then be cancelled. But how do I repossess the shop if they refuse to leave?

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    Hi Sakke, by court order. Get the lawyer who drew up the sale agreement, to do all notices and so on (unless he is their lawyer )

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    Quote Originally Posted by Andromeda View Post
    Hi Sakke, by court order. Get the lawyer who drew up the sale agreement, to do all notices and so on (unless he is their lawyer )
    No, lucklily I used my lawyer.

    Am I right in saying that they can not apply for a Spoliation order?

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    Sakki,e spoliation won't apply because we are referring to enforcement of the terms of a contract and any dispossession will be in terms thereof.

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    Silver Member PlatinumWealth.co.za's Avatar
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    Hopefully this doesn't get any more messy than it sounds already assuming this is a small community where your clients know you personally and might affect your "status" so to speak.
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    Platinum Member sterne.law@gmail.com's Avatar
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    Spoliation would be if you took the shop by force.
    You would give them notice of breach.
    If they fail to correct you then cancel the agreement.
    If they move on, great (although you might want to reserve the right to seek damages)
    If they do not vacate you need the court order. You may want to seek an interim order for you to take over management pending the contract dispute.

    Bear in mind that sale agreement may have an arbitration clause.
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    Quote Originally Posted by sterne.law@gmail.com View Post
    Spoliation would be if you took the shop by force.
    You would give them notice of breach.
    If they fail to correct you then cancel the agreement.
    If they move on, great (although you might want to reserve the right to seek damages)
    If they do not vacate you need the court order. You may want to seek an interim order for you to take over management pending the contract dispute.

    Bear in mind that sale agreement may have an arbitration clause.
    Will check on the arbitration clause.

    Just noticed that the Sale Agreement has no "restraint of trade", so i can open the same industry if I want?

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    Quote Originally Posted by sterne.law@gmail.com View Post
    Spoliation would be if you took the shop by force.
    You would give them notice of breach.
    If they fail to correct you then cancel the agreement.
    If they move on, great (although you might want to reserve the right to seek damages)
    If they do not vacate you need the court order. You may want to seek an interim order for you to take over management pending the contract dispute.

    Bear in mind that sale agreement may have an arbitration clause.
    No arbitration clause

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