What are my rights regarding a default on a lease purchase agreement? I own a business and leased it with the option to buy. Several items are in default on their end of the agreement. Do I have the right to take back the business, and can I do so immediately?

ScottGem

If you are selling someone a business on a contract, and they violate the terms of the contract, then send them a letter stating that they are in default, listing the default items. Give them a reasonable amount of time to repair the defaults or you will declare the contract void.

Fr_Chuck

BUT, what does the contract state about being in default, it should state the terms for giving notice ( as Scott said) and what your rights are if they remain in default.

It can help if you tell us more about in what ways they are in default.

excon

Hello lease:

Contracts aren't written to cover stuff when things are going well. They're written to cover stuff when things go badly. If you wrote the agreement yourself, but didn't include the stuff that protects you if the leasee defaults, you're probably going to lose your business.

If a lawyer wrote it, he covered you. So, that is where you'll find your remedies.

excon

leaseoption

Thank you all for your answers. My agreement was that they had to maintain the large equipment and keep a certain amount of inventory in the store. I verbally informed them of the first default telling them that they needed to uphold the lease agreement. Then I inspected the equipment and supplies at the end of the 3rd quarter after giving them 5 days warning of my inspection. Again, they were in default.

Now what do I have to do to remove them from the business?

Sincerely,

Leaseoption

ScottGem

Do what I told you.