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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My question is in relation to the sale of shares in our business.

Resolved Question:

My question is in relation to the sale of shares in our business. My husband and I own 50 ordinary shares each. In sept 2015 we accepted an offer from someone wanting to buy the business. A letter of intent was signed and the sale of shares should have completed in that same month. This didn't happened, I received a 30k deposit payment into my personal bank account in sept 15 and the outstanding balance still stands at £120k. It appears as though this deal may not complete. The buyer has had full access to our business, the day to day running and accounts. He has now decided he's not sure about the deal. Can you please advise where I stand legally with the 30k deposit he paid. We have opened up our company to him and he is a competitor in our industry. Many thanks, ***** *****
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello Luci my name is ***** ***** I will help you.
Did the letter of intent say the deal was subject to a further contract? Did it say whether the deposit was refundable?
Alex
Customer: replied 1 year ago.
Unfortunately no, it was quite a basic letter of Intent- the share purchase agreement states it's non refundable but the buyers have not as yet signed this.
Expert:  Ash replied 1 year ago.
Does this letter go on to make reference to the purchase agreement?
Alex
Customer: replied 1 year ago.
Unfortunately no.
Customer: replied 1 year ago.
I have just re read the LOI and its states that the deal should complete within 2 weeks which equated to the end if September. We have waited for his funding to come through, albeit originally he told us he had readily available funds and we accepted this offer - knocked down from (225k) on the premise that it would be a quick sale.
Expert:  Ash replied 1 year ago.
Ok, I think on that basis you could retain the deposit. Technically you could sue for breach of contract but based on the letter which says about completion by September and its February I think there is a decent argument for keeping it.
Can I clarify anything for you about this today please?
Alex
Customer: replied 1 year ago.
Just a general question on this if it went to court does it tend to be a long process?
Expert:  Ash replied 1 year ago.
Around 6 months.
Alex
Customer: replied 1 year ago.
Thank you for your help with this matter.
Kind regardsLuci
Expert:  Ash replied 1 year ago.
Good luck Luci
Alex
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