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CRay106 · Jul 27, 2011, 01:44 PM

Hi I sold a consignment store business but I did not own the building which was OK because the people that bought it only wanted my software which I did the transfer papers to them and some of my merchandise and shelves/racks and all of the business items with the store name, printer tickets,forms. Now after a month they have contacted me back and want more items and want me to give it to them or they are going to take me to small claims court. So the question I have is what should I do and do I have an obligation to give them stuff that they (1) did not pay for and (2) they did not want?

joypulv · Jul 27, 2011, 01:50 PM

I doubt that they will win a dime, but how did this happen? Do you have a written contract with an inventory, and they paid you a lump sum after a walk through? Why a month later? Were there 'affixed' fixtures in the building that stayed with the building, as is common with a lease, that are in dispute?

CRay106 · Jul 27, 2011, 01:58 PM

To get of business I sold it very cheap and No I did not do an itemize list. As for most of the merchandise that was being sold I had to give back to the consigners and the buyers knew that. When they first bought the business they didn't want my Computer hardware because they had their on so I reduced the price more then after 3 weeks they called and told me I had to give it to them at which I stated that they didn't pay for it. Also when they came and loaded up all of the Racks and shelves (some were attached to the building which should have stayed) and the merchandise that I owned ( 3 truck loads) they were happy and stated that they wouldn't need anything else. Now they are calling and harassing me and threatening me with small claims court.

joypulv · Jul 27, 2011, 02:46 PM

Assuming all the facts are as you state here, I don't see how they have a leg to stand on in court. It all depends on what is in writing, not what was said. Verbal contracts rarely hold weight in business transactions.
You could countersue for racks fixed to the building, but really the owner is supposed to sue you, and then if necessary, you sue the buyers. You could try though, if they actually file in small claims.

CRay106 · Jul 27, 2011, 02:54 PM

The Facts are very true, and most of the agreement was a verbal with witness and for the bill of sale it just stated that they bought the business and for the amount paid.

joypulv · Jul 27, 2011, 04:08 PM

A judge will realize that this is sour grapes. They saw stuff that you had to return to people, thought they had a good deal on the rest, and now can't sell most of it. Consignment shop owners don't realize that you need a steady stream of customers to cover rent and utilities and taxes and advertising. Even then, it's tough.

ScottGem · Jul 27, 2011, 04:38 PM

So all you have is a bill of sale that states you sold them the business. You may have a problem then. They may be able to lay claim to anything that was a part of the business. Items that were held on consignment wouldn't be included since they were still owned by the owners. But your computers, fixtures, anything you used to operate the business, would be considered part of the business and included in the purchase price.

joypulv · Jul 27, 2011, 05:08 PM

But they were the ones who loaded all the stuff into their trucks. A month ago. It makes no sense that they wouldn't take the computer then and ascertain what they were taking. And it does make sense that they said they would offer less to not take the computer. And how is the burden on the seller to prove what isn't included now? The buyer could claim just about anything that way. The burden here is on the buyer to prove what was part of the sale.

CRay106 · Jul 27, 2011, 05:28 PM

I agree and I have 3 people that was there when they said that they did not want the computer equipment because they had their own. I also forgot to state earlier that they did receive all of the point of sale equipment that went with the software. I am just tired of them calling and threatening with small claims court, all this hassle and they only paid $2,000.00 for everything they got. As for all of the items that were on consignment 90% was given back to the original owners because I did find out that they did load up clothes they were not supposed to so I had to pay for that also.

joypulv · Jul 27, 2011, 05:56 PM

Get caller ID and don't answer.
Don't worry about small claims. IF they file (they would have by now, I think) you get a form in the mail to fill out as your defense. They can then proceed on to court with you, but they have to pay the fee. Just make sure you show up. Keep your story short. Don't mention anything that you don't have proof of, such as witnesses. They can write notarized affidavits. You don't really need anything. They gave you 2K on a certain date and took everything away. End of story.

Fr_Chuck · Jul 27, 2011, 06:02 PM

Part of the issue is of course that a sale of a business should have been in writing, and a bill of sale or receipt should have listed very specific what they got

If there was a vague statement, they bought the business, it could be considered to be all of the business.

But agree, let them take you to court

ScottGem · Jul 27, 2011, 06:30 PM

Originally Posted by joypulv

The burden here is on the buyer to prove what was part of the sale.

I'm going by the statement that the only documentation is a bill of sale that states I am selling this business for this amount. If its as simple as that, then ANYTHING that was part of the business is part of the sale. Now witness testimony to the contrary would help counteract that.