Q: Me and my partner were looking to buy a business and gave a check as a earnest money deposit to the business owner.
The deal went south and we have a receipt saying the money is refundable if the deal does not goes through. The amount is 25k. The receipt says money needs to be refunded within 3 months but the seller has no intention to give the money back. What can be done is this matter to recover the money.
A:
If the seller will not return your money, look at your contract. Look to see if there is a remedy provision for what happens if one side breaches the agreement. It may include language on where a lawsuit can be brought and other terms. There may be a provision for attorney's fees if a party breaches.
If there is no restriction, you should probably write a letter demanding the return by a date certain or you will file a suit to reover.
In the future, when you buy a business or make an offer- deposit the money with an escrow agent to hold- don't give it to the buyer.
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