Raeford, NC asked in Business Law and Civil Litigation for North Carolina

Q: can someone sell a leased item as their own and not let the lease owner know?

I purchased a business and the owner of the business i purchased sold me some equipment that was under a lease and had not been paid off. The owner of that business never told the lease company or paid a payment...

1 Lawyer Answer

A: The attorney who handled your acquisition should have considered this in your PSA. If it was a stock sale, as opposed to an asset purchase, the business is likely the lessee on the capital equipment lease for the equipment included in the sale of the business. Check your due diligence file for this transaction.

You should definitely go back to the attorney who handled the acquisition on your behalf. If you didn’t have an attorney for such an important and complex transaction, there are likely to be other problems you will encounter.

As a business litigation attorney who handles lawsuits arising from such transactions, I live DIYers who do these transaction without seeking legal help because I will likely make a LOT of money on the back end litigating matters.

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