How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

I am looking to protect me a seller of shares in my business

Resolved Question:

I am looking to protect me a seller of shares in my business from the buyer failing to pay. The amount is to be paid over a period of 3years. An initial amount on completing the agreement and then further 2pYments on each anniversary. Can I protect myself in any way if the buyer fails to make payments?
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.
Do you intend on having any form of contract?
Customer: replied 1 year ago.
Yes a Share Purchase Agreement.
Expert:  Ash replied 1 year ago.
If you have an agreement and the details are within this agreement, if he breaks it then you can sue for breach of contract and claim losses. If you do that and get a County Court Judgment you can charge the shares you sold to him and claim them back!
So make sure it is in the share purchase agreement what happens if he defaults in any way.
Can I clarify anything for you about this today please?
Alex
Customer: replied 1 year ago.
So if it is not in the agreement as to amounts to be paid and by when then no breach of contract and no default?
Expert:  Ash replied 1 year ago.
If the formula is there yes. If nothing is there no, but maybe depending on wording, but it must be in the contract.
Does that help?
Alex
Expert:  Ash replied 1 year ago.
Hi
I am just following up to see if there is anything else I can help with?
If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.
If you need more help please click reply.
Alex
Customer: replied 1 year ago.
Hi Alex. One finL thing. When you say charge the shares and claim back what do you mean?
Expert:  Ash replied 1 year ago.
You get a charge over them so they can't be transferred or sold
Does that help?
Alex
Ash and other Law Specialists are ready to help you