A cannabis shop owner sold the business to Oregon weed retailer Nectar. The deal has gone to pot. See “Major Weed Retailer Nectar Hit With $4 Million Breach of Contract Lawsuit.” There are two important business sale agreement lessons to take from this dispute.
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- If you’re the seller, make sure you get paid enough up front that the deal is worthwhile even if it falls apart later. An agreement where you chase the bulk of the money often means you don’t get paid what you want. Or you’re working for free to keep the business afloat as part of damage control post-purchase.
- If you’re the buyer of a venture, be sure you’re ready to perform post-closing per the business sale agreement. In this instance, it appears both parties underestimated how long it would take for state government approval of the ownership transfer.
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An experienced business contracts lawyer can help you reduce the risk of these and other pitfalls in your business sale agreement…whether you’re the buyer or the seller.