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Can I sue for breach of contract? I signed a contract of sale in regards ***** ***** business. This was to include stock, an ebay account to sell the goods on, training and supplier information. The price it was up for was £8000, we agreed with the buyer that we would sell this for £6500. We had met the buyer and gone over everything and had spent a lot of time securing this sale. This buyer then decides that he only wants to pay a part payment of £3000 and the remainder when it had reached its annual profit. To be honest we should never of agreed to this as it was a very poor value deal as the stock had cost us £1500 alone however we had a new business that we was working on within the same industry but slightly different and we wanted to build it up like we had this one. We agreed to this and signed a contract. Buyer promised that he would sell a certain amount of items per week so he could get the money to us within the year. There is no withdrawal clause in this contract. Buyer personally inspected stock and was happy and we provided training both in person and in terms of a business pack. We have trained him completely about the trade and given him ideas on how to expand in ways we did not have time to devote ourselves to. He has now had the stock in his possession for 6 weeks and the contract was signed 8 weeks ago. We decided that instead of putting the sales through our supplier we would take orders through our jewellery business and contact the supplier directly ourselves. We would not be making any profit on this but this way we had a record of the sales and what the annual profit stood at so when our money was due if he did not make payment the contract would be void and we could stop selling to him until he paid us the money he owed us. We did not disclose to him that this was our business which was probably wrong however we had suspisions that when the time came he would not actually give us our money and just run away with the supplier details. He has never placed an order in all this time. Now he is claiming the stock is defective which it is not and once again he has had this in his possession for 6 weeks now. He then writes up a email demanding £3000 back and once he has this he will return our stock and ebay account. This is obviously completely unreasonable as he has the items in his possession and there is nothing stopping him keeping the items and his money. My business partner and I wrote him up an email saying that we are unhappy with him not sticking to his side of the contract and would like to mutually end the contract. He has the option of selling the stock and the account on himself and we will transfer him the remainder of the price or he can return these to us and we will refund him. He is refusing both options and is saying he wants the money in person by lunch time and only then will he return our stock and ebay account. He is also saying that if he does not have it by then he will go to the police for fraud and deceivement. This does not worry me at all as I have stuck by my side of the contract but now I am wondering where I stand legally regarding the situation. Am I able to sue for the remaining £3500 as he is being unreasonable and is breaching his agreement?
Thank you for your response. The buyer is being a nightmare, six weeks in he is now saying goods are defective which they are not. He has personally inspected these and had them for a long time. He is pulling at any string to try and get money returned including threatening to go to the police for fraud and decievement which is ludicrous to say the least. If you could please just clarify that we was within our legal right to place the order through our company so we had a record of it and when our money was owed. Once again we made no profit on this we just needed a record of when our final payment was due. If the buyer did not pay this then we could void the contract and stop the sales until we got our money. My business partner and I have lost so much time, have trained this buyer up completely with knowledge in the trade and provided what our contract states