Legal Question in Real Estate Law in Rhode Island

Re: Buying business and property

Sounds like you are thinking about what is commonly known as a "Letter of Intent."

As the name implies, this is simply a letter to the seller itemizing the specific terms of your proposal, such as: (i) Description of what you want to buy; (ii) Price you propose to pay (specifying any terms); (iii) Date of the sale; (iv) Collateral terms, such as non-compete agreements, consulting agreements, and any other agreements you want.

You need to sit down and write out exactly what it is you think you are buying, then give that list to your lawyer to review BEFORE you give it to the seller. Your lawyer will likely have suggestions that you may not even have thought about.

Bottom-line: If you want to start a business, you need to start thinking like a businessperson, and recognize the immeasurable value of getting good professional advice early on - legal and accounting. Such advice can save you many times what it costs.

Put differently, delivering a Letter of Intent to a prospective seller before you discuss the project with a competent business lawyer is a very bad way to start your business!

While my firm has too much work at the moment (I only have time to answer LawGuru questions!), I certainly could refer you to someone qualified, or you could just ask questions of any prospective attorney and accountant, starting with "how many small businesses have you counseled?" And "do you have a policy to promptly return telephone calls?"

In any event, best wishes for a successful venture.

Scott Summer

Montaquila & Summer, PC