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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 69359
Experience:  Over 5 years in practice
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Sold pallet wrap to a customer on 4th January 2015 and I sold

Customer Question

Sold pallet wrap to a customer on 4th January 2015 and I sold my business on 6th February,2015.
The customer have contacted us only last week complaning that material he bought from is not working on his machines.
The customer have taken more than two months to report the matter. My question how can I entertain the complain to rectify the situation as I sold the business and have no
business facility to take the goods back.
Submitted: 1 year ago.
Category: Law
Expert:  Jo C. replied 1 year ago.
Hi.
Thank you for your question. My name is ***** ***** I will try to help with this.
Did the buyer take over your business with all of it's debts and liabilities?
Was this is a limited company sale or are you a sole trader?
Customer: replied 1 year ago.

No (Question 1)

ASSET SALE INCLUDED STOCK PLU,CUSTOMER BASE AND ITS GOODWILL.

Customer: replied 1 year ago.

Question 1 NO

Question 2 The Limited Company sold part of its asset i.e, stock plus

entire customer base of the Company.

Expert:  Jo C. replied 1 year ago.
Did you have a properly structured business sale agreement?
Customer: replied 1 year ago.

Answer to your Question : YES.

Expert:  Jo C. replied 1 year ago.
Thanks.
I will look at this now
Expert:  Jo C. replied 1 year ago.

The customer has no cause of action against you. He bought the goods from the limited company and his cause of action/claim is against that limited company. You have no liability to the customer assuming that you didn’t misrepresent the material and there is just something either wrong with it or his machine.

The limited company is now owned by someone else and therefore that someone else has to deal with the claim under the auspices of the limited company.

The buyer of the company may have a claim against you under the warranties in the business sale agreement. However if the agreement has been structured properly, there will be a time limit on these (which could vary from months to years) and a maximum amount of any claim.

Can I clarify anything for you?

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