• Selling of running business with goodwill

I have my own business in propritory capacity on a rental business place.It is doing well but due to other priorities i decided to sell out this running business to a prospective purchaser under following conditions :-
1) purchaser will use the same business name i am using
2)business place i.e. shop is a rental property and the shop owner will rent the shop to new purchaser i.e. the person whom i am going to sell.
3) the purchaser will pay me rs. 11 lakhs as a goodwill as a purchase prize over and above price of the business stock he would decide to keep.
4) the other important condition is that the purchaser shall have to me 50% of first year profit as final payment of the deal.
5) the purchaser will obtain new GST registratio in his name.
kindly advise me what kind of documtnts with specific set of documents do i need to prepare and obtain vis-avis execute in this deal.
Asked 8 years ago in Business Law

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4 Answers

deed of assignment has to be executed for sale of proprietary business

2) it should be mentioned that The Assignor has agreed to sell and assign and the Assignee has agreed to purchase from the Assignor, free from all encumbrances, as a going concern, the said business of ________________ along with its assets,

licences, permissions etc. including the said name along with its goodwill as

incidental to the assignment of the said business as also with the benefit of

monthly tenancy rights of the said premises for the consideration and upon the

terms and conditions recorded herein.

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

1)the HC has not passed any order restraining carrying on further investigations

2) the applicant has been directed to cooperate with investigations

3)the police ought to have completed investigations and filed charge sheet in the matter

4) you can file RTI with police station as to what has been the results of investigations carried on in the matter

5)file writ in HC to direct police to submit investigation report . mention that in spite of court orders police have not completed investigations nor filed charge sheet for period of 2 years

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

You can enter into a Goodwill Purchase agreement with the buyer with some terms for example:

PURCHASE PRICE AND EXCHANGE OF CONSIDERATION. The Sellers agree to

sell, assign, transfer, convey and deliver to the Buyer at the Closing the

Goodwill including, but not limited to, all of the Sellers' respective rights

and benefits related to the Goodwill. In exchange for the Goodwill and subject

to the terms and conditions of this Agreement, the Buyer agrees to pay to the

Seller a sum of Rs....... towards the purchase,

besides other conditions in the agreement, to your convenience.

The other documents will include the transfer of your shop rental agreements.and other requirements namely procuring GST, licence on the buyer's name etc.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

The investigating police too is comfortable with this status quo and is not initiating the investigation.

Now i am retired from my govt. job and cannot play role in the proceeding of FIR or police investigation.

this is frustrating me seeing the thief win. kindly guide me wjhat short of legal recourse i can take up in this case.

Since you are not party to the case, neither a defacto complainant, you cannot do anything to progress the case.

The accused is taking advantage of the loophole of the law.

You cant help it than to remain a silent spectator.

If you are so much interested to get the case moved, you may file a petition to the concerned police seeking information about the status of the investigation entrusted to them on this case after which you can plan to file a PIL on this.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

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