Q: Yes, I was buying a business for someone and they would never give me a contract, dispite numerous requests , then when
I wasn’t able to make a payment for the month he changed the locks to the shop without any verbal or written warning locking me out of the shop. All my personal belongings where inside and was not able to retrieve them. I had material belonging to customers inside and have gotten completely shut out. What rights do I have in this instance?
A:
This is a matter of contract law and should be consulted with an attorney admitted to practice law in Texas.
Generally, a contract is a promise or set of promises for breach of which the law gives a remedy or the performance of which the law in some way recognizes as a duty. Oral agreements are enforceable provided that the party seeking enforcement of the agreement can prove the existence of the agreement.
You mentioned your breach (failure to pay), and mentioned the other party's actions that might also constitute a breach depending on the terms of your agreement. If the parties agreed that failure to make one payment would constitute a material breach of the agreement, then his actions might be legal, although you may have an equitable action for unjust enrichment, and an action for replevin to recover the assets belonging to your clients.
Please seek consultation with an attorney in your area. You may use Justia's directory to find an attorney in your city.
I always recommend that before buying a business, you need to have a) an attorney and b) an accountant to assist you with the transaction.
John Michael Frick agrees with this answer
A: It is very unwise to have ever given someone money to buy a business before fully negotiating an agreement and putting it into writing.
A: The problem in this type of setting is that it can be one person's word against the others. One option is to review the matter with a Texas attorney to determine if you have the basis for a case, and if it would be cost-effective to pursue, given that there is no written contract. Good luck
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