Deal Gone Bad

Discussion in 'Lawn Mowing' started by greenngrow, Feb 28, 2003.

  1. greenngrow

    greenngrow LawnSite Senior Member
    Posts: 403

    Well,
    I really have some things to sort out. As some of you know I was in the process of purchasing a LCO in a near by county.

    After yesterday and today's conversation with former employee and the biggest commercial account they HAD.

    I am now going to back-out of the deal.

    The former employee was not to kind of his former employer.
    He was told by the boss to talk up the biz and make it sound real good so they could get this sold and get Atlanta, GA.

    He also told that the major commercial account was not theirs this coming year.

    I spoke to the guy in charge of the property today and he confirmed that they would be working for them ever again.

    Now my question to you all.

    At our last meeting I signed a paper that stated that it if I did not purchase the biz. That I would not contact anyone on the list.

    If the all commercial are open for contract each year can they hold me to this????

    I am not going buy a piece of gum from these two. Besides they are going to be moving out of town in the next few weeks.

    I going to run ads in the local paper and put fliers out next week.
     
  2. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    I guess that would depend on the aggressiveness of the former company you have been dealing with. You signed a paper that said "anyone" on the list. Your call on this one. I have better things to do than get involved in possible legal matters, so I would do as I stated in your signed agreement. Have your lawyer give you advice. That would probably be best.
     
  3. Gravely_Man

    Gravely_Man LawnSite Silver Member
    Posts: 2,075

    Greenngrow, I hope you consulted a lawyer as I suggested. If so just have a follow up conversation with the lawyer to find out what you can and can't do now. If you have not yet contacted a lawyer now is the time to do so.


    Gravely_Man
     
  4. greenngrow

    greenngrow LawnSite Senior Member
    Posts: 403

    Guys,

    I have tried to contacted two other lawyers. My personal lawyers is inviable.

    Getting back to the paper signing and the good faith of the sellers.

    They had contracted some of the customers and told them that they were selling the business. They told me that this particular account was going with whoever bought the biz. Now after talking to both former employee and management group. They were never told that they would do this. To me that is out and out fraud.....
     
  5. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    Simply call the person you were going to buy out and tell him you had the money but now its gone. If you don't have any $$$ he will forget about you very quickly. It might seem unethical but so was he. By the way, never sign anything you are not 100% sure about.
     
  6. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    Mark,

    yes, i would say they would have grounds to file suit against you should you contact their listed accounts, but will they? It seems like they really want to get the heck out of there. I would go ahead and discretely contact the accounts you are interested in and hope for the best. I would think that by the time anyone knows who has the account, they will probably be gone.
     
  7. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Posts: 870

    Why wouldn't you hold YOURSELF to this.

    - You signed the agreement - Don't be a sleazeball, your word is everything.
     
  8. greenngrow

    greenngrow LawnSite Senior Member
    Posts: 403

    I know about the signing thing.

    But Man these guys are bad news after finding out what they were doing. It is a good thing he is moving because he was not too well thought of by his customers.

    I got in contact with a lawyer. She helped me out on the letter that sent to the couple. I enclosed the letter with all the information that they had given me.

    I going to send it to them certified mail today.

    The lawyer told me that they were standing on shaky ground with the agreement that I signed. You see they did not sign it in front of me. Nor did a notary sign the agreement. I asked for my copy and have not received it yet. I know that this sound nonbusiness like so don't bust me for this. I have been around enough to know what is going on.

    I am just sure glad that I had the fore-site to check things out before they got too deep.

    I just wanted everyone to know this because biz are sold everyday. Buyer be aware!!!!!!!!!!!!!
     
  9. hboyd_com

    hboyd_com LawnSite Member
    from PA
    Posts: 150

    I suppose I am in the minority, however I assume you read and understood what you were signing. Part of any deal like this includes some due diligence on your part. Now that you hve done the due diligence, you have enough info to cause you to want to back out of the deal... which is your decision.

    In my opinion, it would be illegal, and more importantly to me, immoral, for you to use info that you gained to try and take those accounts.

    Look at it from there point of view... what would stop every Tom, Dick or Harry from going through their records, having no intention of actually buying the business, just to get valuable info.

    Granted, you didn't enter into this agreement with an intention to swindle them... why would you try to do it now?

    JMHO.
     
  10. "At our last meeting I signed a paper that stated that it if I did not purchase the biz. That I would not contact anyone on the list.
    "

    Of course, check with a lawyer, but, generally speaking, a contract is not valid without consideration. Consideration means some financial benefit. No consideration, not a valid contract.
     

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