Purchases and sales of shares and assets.

[lonerdriver1]

A friend bought a tractor and trailer, He couldnt make money so he gave the business to me. He had me sign a stock purchase agreement that stated I would pay him 1000,00 a month. As we were friends he told me this was just to get everything out of his name and we would work out the details. 10 mths has gone by and business is really bad. Im about 4 months behind on payments now he is taking me to court and demanding all the assets back. Which I dont mind really, but does he also get the debt tied to the company. This is in Georgia.

[AFFA]

I wish to inform you that our agreement will govern your rights. In this regard if the company ownership is taken by your friend in court then he has taken the debts but if only assets of the company are taken then no debt is taken. The debt are related to company and thus transfer of company may be required. If the business is in the form of company then liability of owners is limited.

AFF

[lonerdriver1]

It is a Corporation, small all be it but still a Corp.

[Friend In Court]

If you do not complete the terms of the purchase he can take the business back. With it he will get all assets and debts, too.

[Lexus]

As you signed only a stock purchase agreement the business was not in your name. So you are only liable to the extent of the matters concerning the stock but not to the debt of the company. Your friend can retain the stock from you because of your failure to comply with the stock purchase agreement.