Last year in early March we sold our small family business for $76,000. We received $70,000 before handing over the keys to the store. We had a contract where they would get everything from the store as is. They said they would review the contract and then sign. They did and they got it notarized without our signature on the document. We just saw the copy notarized and they said they would later be giving us a copy (we are a small town where we trust each other). We agreed they would pay the remaining as they got on their feet after being hit with the $70,000 and their children's college fees. The day of their first day as owners, they called the cops saying they had received a tip call saying that we used to sell drugs and that drugs were still hidden in the store. Cops went over and took their dog. There was no evidence of this so called tip call and the dogs weren't alerted at all. The case was dismissed. A couple months later, they claimed that the meat machines we had left were classified as not usable by the health inspector. We went to talked to the health inspector and he told us that the meat machines were never an issue and was confused to why they would say that.
On the surface, you appear to have a decent claim for the remaining balance owed under the contract. However without more facts and without seeing the entirety of the language in the written contract, I cannot give you a definitive answer. You should consult with a nearby attorney who has dealt with contract litigation and collection. Just so you know, hiring an attorney to collect could end up costing more than what you are owed unless attorneys' fees are allowed under the contract. This is an important consideration to discuss with your attorney.
I agree with Mr. Larson. Additionally, if you have a contract and the outstanding amount is only for $6,000, you might be better off attempting to recover that amount in small claims court. Because the outstanding amount is low enough, that is a good option and you won't end up paying an attorney a good chunk of what you might recover. I'm sorry to hear this has happened; I can understand how frustrating this would be. All the best to you.
You may want to look at the purchase/sale agreement to see if you have a security interest in any equipment or fixtures in the store that may be used to satisfy payment. Otherwise, you're looking at a small case that may be cost prohibitive to pursue.
