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Does previous owner if he financed your business have to except it back or can he refuse itl?

I have a small business which is Inc. and was sold to me by a previous owner which he financed and now the loan is about 90% paid for and struggling with the economy as it is. There is no Real Estate involved but he has a UCC1 on the assets of the business and equipment and so forth and it is in a leased building, If I give up the business and return it to the original owner does he have to except the business back or can he refuse it.

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Attorney answers (1)

Reputation Level 20
Generally, if you breach the agreement, he can exercise certain rights under the contract. He can in fact choose whether or not to exercise some, all or none of his rights thereunder.
However, a lot depends on your contract and state law, so you should consult with an experienced business attorney.

Hope this helps.

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