What options do I have if I was sold a business with false papers?

Full question:

I was sold an ice cream/sandwich shop with false papers. What recourse do I have against the seller?

  • Category: Real Property
  • Subcategory: Fraud
  • Date:
  • State: California

Answer:

If you were misled into purchasing a business due to fraud or misrepresentation by the seller, you have several options:

  1. You can rescind or cancel the contract.
  2. You can affirm the contract, keep the property, and sue the seller for damages caused by the fraud.
  3. If the seller sues you for the purchase price, you can counterclaim for the damages from the fraud.

Additionally, you may pursue claims for fraudulent concealment, fraudulent misrepresentation, and negligence. In California, obtaining property through false pretenses is a crime, which involves deceitfully acquiring both title and possession of the property.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, you can report someone for selling counterfeit items. You can contact local law enforcement or file a complaint with the Federal Trade Commission (FTC) or the U.S. Customs and Border Protection. Providing evidence, such as receipts or photographs of the counterfeit items, can help in the investigation.