Legal Question in Business Law in Maryland

purchasing a dry cleaners

I am in the processing of purchaning a dry cleaners for an exisiting business. The exisiting owner and I have agreed upon a purchase price by a certain date. I give the owner a deposit to take the cleaners off the market with an agreement to pay in full by 16 March 07. This agreement was put in writing. I realize now that I don't have any thing in writing to confirm what I will be getting for my money. I need something in writing to show that the euipment I am purchasing for $75,000 will not fall apart a week after I purchase it. What can I do to safeguard myself and ensure that my $75,000 won't go down the drain.


Asked on 3/10/07, 1:41 pm

2 Answers from Attorneys
Steven Rinaldi Steven D. Rinaldi, P.C.

Re: purchasing a dry cleaners

You need an Asset Purchase Agreement, in which you have the rights to pursue a comprehensive due diligence investigation of the business' finances, the condition of the equipment, whether or not the business/equipment is subject to any litigation, and whether or not the business/equipment is encumbered by any liens (among numerous other issues). You also need warranties that the equipment is in good working order, the business has filed and paid its taxes, and is not subject to any litigation (among numerous other warranties that should be included).

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Answered on 3/10/07, 4:10 pm
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: purchasing a dry cleaners

Due diligence is needed to ensure that the other party can convey what you have contracted purchase.

Land may be compromised where a dry cleaning business occurred. Much of this relates to the condition of operation and the equipment.

You should contact an attorney for assistance.

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Answered on 3/11/07, 12:27 am


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