Is the seller liable?

Is the seller liable?

A breach of contract may also render the seller liable to pay damages to the buyer for any loss resulting from the breach. According to the Sale of Goods Act the buyer is entitled to damages for losses he/she suffers because of the seller’s delay or a defect in the goods.

Can I sell my accounts receivable?

Also known as factoring, selling accounts receivables is a way for you to close the gap that trade credits create. A factoring company buys your company’s outstanding receivables and advances 60-80% of it back to your company. The remaining amount is paid to you once the customer fulfills payment.

Can a buyer hold a seller liable for liabilities?

Courts almost always respected the allocation of liabilities set out in the asset purchase agreement. But since then, courts have developed several new theories of successor liability in order to hold a buyer liable for the liabilities and obligations of sellers.

How to avoid legal liability when selling a home?

The best and most obvious way for a seller to avoid legal liability is to err on the side of disclosure. If the seller is unsure as to what constitutes a required disclosure, they should avoid liability by disclosing all they know. Sellers should also educate themselves on their state’s laws regarding disclosing defects and what all that includes.

Can a seller be liable for successor liability?

Some courts have imposed successor liability on buyers of business assets under a theory known as de facto merger. As the name “de facto merger” suggests, courts determine that in certain cases, the asset purchase is for all intents and purposes a merger.

Can a buyer assume liability for the goodwill of a seller?

Buyers often purchase the goodwill of the seller. In some cases, the purchase of goodwill may be deemed to include an obligation to assume liability for unforeseen product liability claims that arose before the closing of the deal. Another theory of successor liability is called “implied assumption.”

Courts almost always respected the allocation of liabilities set out in the asset purchase agreement. But since then, courts have developed several new theories of successor liability in order to hold a buyer liable for the liabilities and obligations of sellers.

Some courts have imposed successor liability on buyers of business assets under a theory known as de facto merger. As the name “de facto merger” suggests, courts determine that in certain cases, the asset purchase is for all intents and purposes a merger.

What do you need to know about potential liability?

Prior to the Date of Entry the Seller will provide full details of any common repairs in respect of which a Notice of Potential Liability for costs has been or is to be registered.

Can a seller be liable for a contingency in a purchase and sale agreement?

There are several reasons for this liability limitation, chief among them being the terms, conditions, and especially contingencies, of the purchase and sale agreement. As long as the seller did not knowingly mislead or conceal a material issue with the property, it is unlikely that he is going to be liable.