Legal Question in Business Law in Oregon

Buying Consignment Store - who pays prior consignors??

I am buying a consignment store for 20K. The owner had initially said she

would issue a check at time of sale for 1800 to cover amount owed

consignors. Now she is saying that by buying the business I am buying that

liability - that its my responsibility to pay the consignors. I feel that if I am

having to pay this money then it should come off the purchase price. This is

money that she has already been paid that had been set aside for the

consignors. Any information would be very helpful!!

Asked on 8/27/04, 4:48 pm

2 Answers from Attorneys

Daniel Meek Daniel W. Meek

Re: Buying Consignment Store - who pays prior consignors??

This is a matter of a contract between the seller and buyer of the store. You should enter into a written contract.

If you insist upon receiving the $1800, and the seller refuses, then you have no deal and do not enter into a contract. End of story.

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Answered on 8/27/04, 6:48 pm

Susan Burns Law Office of Susan Ford Burns

Re: Buying Consignment Store - who pays prior consignors??

Who owes the consignors is a matter of the contract between the buyer and seller of the store. If you do not have a written contract, you need one.

If you have a written contract and this situation is not addressed, then you and the seller do not have a meeting of the minds regarding what is being sold and purchased.

You will need to decide whether or not you want to purchase the shop with the liablities.

Our office regularly assists the buyers and sellers of small businesses and would be ahppy to advise you on this purchase. We offer a low cost intiial consulation.

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Answered on 8/27/04, 9:00 pm

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