El Paso, TX asked in Business Law for Texas

Q: Selling my assets located on my property that is currently rented/leased to a third Party?

Case: Property owner rents out his property but he still has junked machinery on site. He decides to sell the machinery located on the current leased property and he states in the sales contract that all machinery must be removed in 15 days or buyer will have to pay a $500 penalty fee, and was "sold as is, where is". A buyer comes and purchases the machinery, he pays and signs the sales contract. Buyer does not remove all the machinery by the end of the 15 days. Seller is mad and asks buyer to pay $500 penalty fee. Buyer tells seller that the property lessee had granted him extra time to remove the machinery which the lessee confirmed, despite knowing contract's terms. Buyer claims that the machinery is now his and is on the lessee's property. Question: Is the $500 penalty still enforceable for breach of contract after sale? Is the lessee responsible for any compensation to seller for alotting extra time without the seller's approval? What went wrong in this contract ?

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1 Lawyer Answer
Teri A. Walter
Teri A. Walter
  • Houston, TX
  • Licensed in Texas

A: Lots of things went wrong here. The landlord/seller is trying to impose a penalty on the buyer, without incurring any damages, the Buyer isn't complying with the agreement, and the tenant is interfering in the contract. Buyer needs to pick up the equipment, the tenant needs to get out of the landlord's business, and the landlord needs to drop the claim for $500 - it's not worth the trouble.

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