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Precautions before selling a small business with delayed payment

Hello,

We have a buyer for a small business for sale. The buyer wants to purchase the company at a discounted price but pays months after the purchase.

We are concerned he may sell the materials, some other nefarious activity, or not pay at all.

What would be your legal advice on this matter?

Thank you

Ahmad Anwahi Advocates & Legal Consultancy
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16 Mar 2022, 18:55

It is imperative in such cases to have a proper notarized Sale and Purchase Agreement clearly mentioning the outstanding payments and the duration of the payments.

16 Mar 2022, 18:56

In that agreement, you have to also make them indemnify you for any loss/damage sustained as part of their business activities.

16 Mar 2022, 18:57

We can help you draft the agreements and notarize them. You may write to us with details by email.

18 Mar 2022, 23:30

How much would your firm charge for such services?

Do you see many cases where a buyer would not fulfill their obligation to pay at a later date?

What would be the legal recourse if that happened?

Thank you

18 Mar 2022, 23:33

Also, in Bahrain, we were wondering about the options for declaring bankruptcy instead of selling the company.

Would bankruptcy be just for that company or would it affect all the assets the owner has?

Thank you!

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Laila Hamza Al Mulla Advocates and Legal Consultants
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17 Mar 2022, 05:12

Do not sell before receiving the value of the project, especially since you are selling at a low price.

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