breach of contract

Dear redhead42,

Without seeing the specific contract, nothing can be said with certainty. However, in the event of a breach of contract there are typically two primary solutions available to you:

• Damages – the buyer may be liable to cover any money (or time) lost from having to list your business for sale again. So what you are ‘entitled to for breach of contract and the time you have waited for him to pay’ completely depends on what loss you have actually suffered. What flow-on expenses and problems have you incurred as a result of the breach? For example – if you end up selling to another buyer for a sum less than the current sale price in your existing contract, you may be able to sue for the difference.  You may also seek interest if there is any delay in obtaining a subsequent contract and settlement. It may also be possible to be awarded punitive damages in court. Punitive damages is money paid by the wrong-doer as punishment for the wrong-doing.

• Specific performance – a court has the power to order the buyer to go ahead with the purchase, however this would require the buyer actually being in a position to be able to afford it.

Realistically, taking something like this to court to seek either of the above remedies may not be a viable solution. It may be worth requesting on a ‘without prejudice’ basis that the buyer pays the cost of re-listing the business for sale to give you the opportunity to sell to someone else, provided you obtain the same or increased sale price. Making a ‘without prejudice’ offer means you will not  relinquish the current buyer of his obligations.

The Australian Government has published an info sheet which explains remedies for breaches of contract in more detail.