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Sold my share of the company but will only get money with net proceeds of sales from our products, but they may close.

Johnston, IA |

Jerry agrees to reimburse Joe Smith in the amount of $20,000 – the amount originally invested into Blank Enterprises. Payment will be made to Joe Smith with net proceeds of sales from Blank products. How can I get my money from Jerry if they decide not to sale anymore products?

Attorney Answers 4


  1. Not sure you can under your agreement.

    Most lawyers will give you a free consultation if you ask for one. We do this all the time, but remember that our time is valuable and you should stay with the people who help you the most.


  2. It would take a review of the contract to give you an answer. If there is nothing in it which compels him to sell the products or makes an alternative payment arrangement, it may be a problem for you.

    By the very nature of Avvo, you have only provided limited facts and no documentation, therefore, our response to your question is treated only as a hypothetical, and as such it is merely general in nature. You should not rely on this response in taking or forgoing action in your circumstances without discussing this matter with an attorney. If we had the opportunity to ask you sufficient questions and review relevant documents so that we were satisfied we had all of the relevant facts and circumstances, our response might differ significantly. Without the opportunity to ask you questions, and review all relevant documents and memoranda, we are simply unable to provide any form of legal advice. Our response to your question does not create any attorney-client relationship between us, and we are not acting as your attorney. We reserve the right to decline representation in any case. By answering your question, we are under no obligation to answer further questions. There are very specific deadlines for filing a lawsuit, replying to a lawsuit filed against you, or taking other action in order to preserve your legal rights. You should contact an attorney immediately in order to be fully advised of your rights, and so that you are aware of those deadlines. If you fail to act within the required time frame, you might be forever barred from asserting your rights or defending your position. The attorney answering this question is licensed in Illinois and Iowa only.


  3. Have an attorney review the contract for you. Hopefully, there are provisions which explicitly, or at least implicitly, put a duty on the buyer to operate the business in good faith, continue to promote your products for sale in the relevant marketplace, not act to impair your expectancy under the contract, or something similar. Provisions like that will give you the ability to persuade Jerry to keep making reasonable, good-faith efforts to sell your products.

    DISCLAIMER: I am an attorney licensed to practice law in the State of Iowa only and not in any other state. The response I have provided is based on the limited information stated in your question or hypothetical scenario. Quite often, a more complete understanding of the facts would lead to different advice or to a broader discussion of relevant or related considerations. The answer provided does not create an attorney-client relationship between us. You should not decide to act or refrain from acting based on my response, which is an attempt to provide general information on a legal topic as presented by you. The law is subject to frequent change and varies from state to state. Also, legal matters often involve deadlines that may significantly affect your legal rights. You should always consult with an attorney in your own state who is knowledgeable in the subject matter, and you should do so as soon as possible.


  4. I agree with the other attorneys - you'll want to have an attorney review the contract for you. One may do it for free as part of a free consultation, or may charge their normal hourly rate. Either way - it's worth it. I'm hoping there's something in the contract that deals with the possibility that Jerry may not sell anymore products. If the contract is silent on the issue, you may still be able to recover if the spirit of the contract was to make sure you got your $20k. Best of luck!

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