Legal Question in Business Law in Pennsylvania

business purchase

I sold my business to a corportion. They 2 owners signed a personal guaruntee, along with a promisary note. The contract has been breached. The payout is over a period of time with a quota that has to be made in order to collect. The quota has been achieved for the 10 months after the sale. As of August there is arreages that is beinging paid on a weekly payment plan. I have been asked to hold checks not to cash until I ask. My question is they did sign with a personal guarentee can I collect form the purchasers personally?


Asked on 11/23/08, 10:18 pm

1 Answer from Attorneys

Re: business purchase

In general a personal guarantee would let you pursue the individuals, in addition to the corporation, for the debt. If payments stop completely, suing both corporation and individuals looks like your course of action. If payments are just slow, you will need to decide whether you can live with this or want to pursue litigation.

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Answered on 11/24/08, 11:37 am


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