Legal Question in Business Law in Missouri

I have a question regarding a business.....

I am planning to buy an existing business and it is a liquore and grocery store located in St louis, I am buying just a business from the owner. We found out that the owner borrowed money from some people and he hasnt return the money yet to them.....my question is, If I buy this business from his is this person that land the money to the owner might sue us or get a lien against our business eventhough we have nothing to do with what happened between him and the person who wants to sell us the business?

I hope to hear from someone as soon as possible before even we give a deposit to buy it from him.

Thanks


Asked on 11/22/09, 9:56 pm

1 Answer from Attorneys
Anthony Smith LawSmith

Whether you are buying the debt of the business along with the things you want to buy is determined by the type of entity you are buying. If you are buying the stock (ownership rights not inventory) of a business, then any loan made to the seller personally would nto be attributable to the new stock owner. It the laon was to the corporation then the debt would go to the purchaser. In either case, if the lender sold goods to the seller on credit (or the seller pleadged the business assets as collateral for a loan) the debt woudl still be collectable for the stock (inventory) or equipmetn that was sold or pledged. Regardless of the sellers entitity, you can address the current accounts payable or other debt of the seller in the purchase agreement and selling price.

Good luck

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Answered on 12/06/09, 6:55 pm


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