Legal Question in Business Law in Pennsylvania

Re: Selling a business

It really depends on how the transfer was structured. However, I will assume that since there is no written agreement, the purchasers did not notify the state authorities about the transfer in ownership.

Generally, yes, the purchaser of a business purchases a business� assets and liabilities. That is why �due diligence� is so important. As the purchaser, you must research every aspect of the business prior to purchasing it. You want to �know� what you are purchasing. On the other hand, a seller has legal duty to disclose known debts. If the seller deliberately hid information about an outstanding debt, the purchaser may sue for fraudulent misrepresentation.

Sharmil McKee

Business Attorney

Philadelphia, PA