Legal Question in Business Law in California

I own a liquor store that I listed for sale and stated it must be in escrow by the end of the month. A buyer called, we met, he signed a purchase contract, I continued to stock my store based on his agreement to purchase the store and then he just backed out. I would not have stocked the store, I know it doesn't sound like much but I lost 8 days of advertisement (I only had 15 days left when he signed the contract) so I lost any potential prospects because I thought he was buying the store. Do we have recourse? A broker handling the transaction says no because he did not put a deposit down....but I thought a contract was binding and I have incurred damages (stock) and potential loss of other buyers. Please help. Thank you!


Asked on 8/22/11, 10:05 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

This is the "I forgot to have a lawyer draft the contract" question. A lawyer would have anticipated these circumstances and put an appropriate clause into the contract.

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Answered on 8/22/11, 10:07 pm
Terry A. Nelson Nelson & Lawless

The terms of your contract are contained in whatever written agreement all parties signed. If the terms of your contract were breached, you could pursue legal action, so long as it makes economic sense to spend the money to do so. Most times in RE matters, the parties walk away and lick their wounds rather than spend more money on lawyers. However, if serious about pursuing this, feel free to contact me.

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Answered on 8/23/11, 1:16 pm


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