TAS Failure to Keep Contract of Sale - Ask for Compensation?

[Katy]

To keep it simple, I had an agreement in writing for the sale of a business by a certain date. This date has since passed and the new owner informs me that they can't pay the remaining owing.

What are my options under Contract Law and can I ask for compensation?

 

[Rod]

Need more information. Much depends on what the contract says. Hopefully, it is in writing!

Who is currently running the business, you or the new owner? Has a lease been signed over?

You can sue for the balance, or possibly take back the business and keep the deposit.

Is the purchaser wanting to pay but cannot afford it? Or simply not wanting to pay? How much has been paid to-date, as a %?

 

[Katy]

It's a simple agreement in writing but not a contract by lawyers. (We live in a small town, a handshake is usually enough, luckily, I put it in writing).

No one is currently running the business (it's a local market held every few months) and there is no lease as we hire different venues.

The purchaser says they can't afford it, therefore now saying they won't pay as agreed upon. Currently, I have kept their deposit and reclaimed ownership until I figure out what to do

 

[Rod]

Currently I have kept their deposit and reclaimed ownership until I figure out what to do

This is all you need to do, assuming the deposit is less than or equal to 10% of the total amount. If the deposit is more than 10% then a court would likely see the amount in excess of 10% as a penalty and say you need to hand back the amount over 10%.

In a small country town, goodwill is probably more important than the sale of the business Hope it works out.