Legal Question in Business Law in Minnesota

Lawn business

My brother got a loan from the bank to buy a lawn business. 2 years later he had lost all but a few of his customers. He was going to hang it up, but I told him I would take over and try to revive it. The problem is that he still owes the bank alot of money. I told him I would help with making payments but that I wasn't going to pay off his entire debt, seeing as he let the business go in the first place. I started working under my own business name and picked up new clients. What I got from my brother amounted to 3 clients and his equipment. The question is this: What constitutes his old business? Since I'm using old business equipment am I in effect working under the old business name or my new one?


Asked on 2/18/09, 8:22 pm

2 Answers from Attorneys
David Anderson Anderson Business Law LLC

Re: Lawn business

I would have to evaluate your brothers business records and entity formation to assess your liability.

Was it a personal or corporate loan?

Do you have loan documents?

Have you paid him anything for the remaining customers?

Call or email for assistance.

Read more
Answered on 2/18/09, 8:35 pm
Daniel Reiff Reiff Law Office

Re: Lawn business

That would depend on a number of issues. The big issue is what you and your brother agreed to. Are there any sale documents? If so, do they say that you are buying his business or just his business's assets? Is there a separate agreement to assume his business's (or his personal) liabilities? Did you or your brother create an entity?

NOTE: Nothing contained herein should be construed as creating an attorney-client relationship. No such relationship is formed until a written retainer agreement is signed by both parties.

Read more
Answered on 2/18/09, 9:41 pm


Related Questions & Answers

More Business Law questions and answers in Minnesota