Business Sale Problem

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lib1307

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Mar 6, 2013
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Banbury
www.cherwelloffice.co.uk
  • #1
    I had my business valued which I thought was quite high so I put it up for sale. This was February 2011 the contract was for one year. I paid a deposit of approx £750.00. The business didn't sell and there was no serious offer so when the lease was up for renewal on the premises I didn't renew it and took the business back home. I am now being sued for £3500.00 as I didn't give 60 days notice to take the business off sale. I admit I signed the agreement but there was so much small print I would have taken me a day to read it. What I say is " you've had my £750.00 and thats enough" The business was not sold and I took it back home where I'm still trading from. Can they do this to me. Any advice would be appreciated
     
    R

    Root 66 Woodshop

  • #2
    Sorry, I'm a little confused...

    You've paid a deposit of £750 to sell your company through someone yes?

    What was the invoice total then?

    It is also 2013 - so why are you asking a question that I believe should have been asked in 2012 as per your February 2011 statement? - Surely the contract was up in February 2012 - how can they charge you £3500 out of the contractual term?
     
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    Mike W

    Mike W

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    • Aug 19, 2010
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  • #10
    lib1307 said:
    I am now being sued for £3500.00 as I didn't give 60 days notice to take the business off sale. I admit I signed the agreement but there was so much small print I would have taken me a day to read it...
    Can they do this to me. Any advice would be appreciated
    Click to expand...

    Have you read the terms since? If it says you had to give 60 days notice, and by not doing so you're in breach of the contract, then I think they've got you by the short and curlies.

    Can they do it? Yes. Will they do it? Most likely. I might be wrong but I suspect this is a large part of the way they do business.

    You probably ought to get some legal advice but I don't think you'll get out of it. Your best option may be to compromise with some offer of settlement. But get the legal advice first.
     
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    lib1307

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    Mar 6, 2013
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    Banbury
    www.cherwelloffice.co.uk
  • #12
    Thank you for this. yes I've learnt since this is the way they get their money! Over inflate the business value so you sign up and then con you when you don't give 60 days notice although the 12 month contract was well up. As I say I don't carry the contract with me all day and read it all the time. I feel £750.00 is enough for nothing in return!
     
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    Mike W

    Mike W

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    • Aug 19, 2010
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  • #13
    lib1307 said:
    Yes but when someone stands in front of you stating he's late for another appointment and just initial the box as its just a formality and nothing to be concerned about.
    Click to expand...
    It's just a pitch... It's designed to do exactly what he's done ...made you rush into signing something too quickly.

    lib1307 said:
    Plus he said he needed to take the signed form back as there were potential buyers waiting to buy!
    Click to expand...
    He must have seen you coming. Have you never been sold to before?!?!?

    lib1307 said:
    what would anyone do!!
    Click to expand...
    Said 'no ...not yet...I need to check the contract'.

    I know you'll think I'm being flippant ...but I'm not. You really should read the terms of any contract you're signing up to ...ESPECIALLY ones that relate to something that is so important to you... your business.

    Unfortunately, this just might be a very expensive learning experience for you.
     
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    bigee

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    Jan 19, 2008
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  • #14
    I am no expert (like some on here..) But,i would have thought you have a good case of that contract being mis sold to you.....if it was taken away then you had no chance to scrutinise it and reject it?
    Got to be worth asking an 'actual' expert ? ie, a solicitor.
    Good luck,but dont just roll over for them!
     
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    The Pines

    The Pines

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    Nov 20, 2008
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  • #15
    A huge amount of corporate sales agencies make their money from contractual charges rather than commission on actually selling the business. In the USA, less than 20% of businesses marketed for sale are actually sold within 2 years, I'd imagine the stats are pretty similar here.

    Have a google for your agent and add the word 'scam' onto the end, i.e. search for 'XYZ Ltd scam', substituting XYZ Ltd for the actual company name - I'll bet they have a stack of complaints against them, and I'll also bet they don't proceed with their legal threats for fear of losing due to unfair T&C's.

    Good luck!
     
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    The Pines

    The Pines

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    kulture

    kulture

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  • #17
    I would be tempted to tell the agent to go away. But a bit more blunt than that. Read the contract. If it was a 12 month contract and the 12 months has passed, how can they say you did not give them notice? The contract is over. You cannot be forced to give notice on a contract that has terminated. HOWEVER perhaps the contract rolled over, and did not then terminate after 12 months. It is crucial that you find this out. Then if it did roll over it is on this basis that they are demanding 60 days or £3,500. You may be able to say that it is an unfair clause. You may be able to say that the £3,500 damages are unreasonable. You could also challenge them to say what they did to market the business, and suggest that they did not do a proper job. There are two sides to every contract, and if they did not do anything on their side, if they did not send any prospects round, and did not properly advertise it, then you have just as good a claim for your £750 back as they may have for the £3,500 they are claiming from you.
     
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    V

    vividbusiness

  • #18
    Again many posts by the time I came to reply forgot what I was going to say, however from what I understand and without seeing the contract I do not think that they are able to sue you? have you actually had court notice of action?

    Was it the same org that valued your business who then tried to sell and now looking at suing you?

    It sounds like you could be involved in a scam, contact me and we can discuss looking into this for you?

    All the best and hope to here from you

    Regards

    Sean Paul
    Senior Business Consultant
    Vivid Business
    @Sean_bus
     
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