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Pulling out of verbal agreement to sell

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  • 27-06-2006 8:21am
    #1
    sapper
    Registered Users Posts: 421 ✭✭


    Does anyone know what recourse, if any, would there be between two business partners - one of whom had verbally agreed to sell his 50% share of a shared asset to the other and then subsequently pulled out of the deal prior to legal contracts being signed? Would the "gilted" buyer be within his rights to demand that the seller go through with the sale?

    What if say, the partners had an verbal agreement that in the event of one of them wanting to sell, the other had 6 months exclusive right to purchase the asset outsight before it is put on the market, and the selling partner pulled out of the sale prior to the end of the six months and prior to signing of contracts? Would the buying partner be within his rights to say that "exclusive right to buy" also implicitly forbade the seller from pulling out of the sale even if contracts have not been signed?

    Any replies will not be taken as legal advice, I'm just looking for people's opinions - thanks


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    #2
    Thirdfox
    Registered Users Posts: 7,110 ✭✭✭Thirdfox


    No-one can (or should) give legal advice on the internet (if only because we don't get paid to do so ;) ) You should edit it to ask a hypothetical question and state clearly that any comments will not be taken as legal advice.

    Otherwise a mod will lock the thread...


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    #3
    dermot_sheehan
    Closed Accounts Posts: 2,062 ✭✭✭dermot_sheehan


    Verbal Contracts can be enforced (provided it's not for the sale of land or interest in land, or to act as surity for a third party in which case the statute of frauds requires the contract to be made or evidenced in writing)

    The problem is proving the existence of the contract. If this can be done, it can be enforced. For example one of the largest sales in irish history (it was fyfees or irish sugar, cant remember), was agreed in a discussion in a lift. The court compelled the sale.

    If you think there is enough evidence to prove the existence of the contract, you can apply for an order of specific performance to order that the sale is proceeded with.


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