What happens to a business sales contract if the brokers were jailed on another unrelated matter?
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What happens to a business sales contract if the brokers were jailed on another unrelated matter?
We are a small business that was sold to another company. The sale was brokered by 2 individuals who were later arrested for SEC violations and are now in jail. The sale of our company was not involved in the illegal activities for which they were convicted. The sale was to be consummated by the exchange of stock which has not occurred. Is the sales contract, that all have signed, legally in force?
Asked on July 14, 2011 under Business Law, Georgia
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
When was or is the sale slated to occur? Meaning, has the date come and gone or are you waiting for the date of transfer to happen?
Are any of the parties to the sales contract that has been signed talking about not going through with the sale? If it appears that the buyer and seller still want the sale to go through, there should not be any problems with it happening even though the two individuals involved in the sale were convicted of illegal activities unrelated to your transaction. If the two individuals were convicted of cromes unrelated to your transaction and there are no accustations of any wrongdoing in your transaction by them, then your sale should happen if the buyers are not having a change of heart.
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