I bought a business in Nov 2010 and its losing

Owned the retail store for 6 months so far and its losing. The seller cheated me, he said it make between 400 to 700 a day, and it only make between 100 and 200. when i bought store he said its for family emergency and he asked only for cash, and i paid 35000 for the retail stores, which is now just losing, i didnt gain a penny, can i sue him??

What does your purchase agreement say? Did he guarantee the  sales? Did you audit his books before you purchased? How big an impact has teh economy had on the business?

"can i sue him??"

For what?  Your failure to fully investigate the financial viability of the business before purchasing?  Sure but you will lose.  You should have done your homework before buying the business.  Having buyer's remorse now that you know its a loser isn't a basis for suing and winning.

Sue him for lying.

What evidence do you have?

Thanks for your reply. There was no mention to sales amount on agreement.

I didnt audit his books, but he showed me some recipts of daily income, and they were in range he said, after burchasing the store, we found a broken cash register, and i think he used it to print those fake recipts.

I dont think the economy impacted the buiness, this is a retail store, people still need to eat and drink.

I can send the agreement if that would be helpful?

"i think he used it to print those fake recipts"  That's just a guess, not proof.

"I dont think the economy impacted the buiness, this is a retail store, people still need to eat and drink." Yes, but they are cutting back on what they spend.

"I can send the agreement if that would be helpful?" Send it to who?

anyway, in the agreement which we got from this site:

http://www.ilrg.com/forms/business-sale.html

it stated:

The Seller agrees that this Agreement is contingent upon the following conditions: (a) Buyer obtaining a Lease on the said premises or that the existing Lease be assigned in writing to the Buyer.

I didnt have lease and the lease still under his name, would that be any beneficial?

Bytheway, you asked about proof, do you think if i bought business on sunday and if it was really making 400-700, and on monday it started making 100-200, and for the whole entire period this amount is consistent, do you think he was not lying???!!

and I know that it was my fault to trust, but now, that i've been fooled, and i am in the worst situation you could imagine, what i can do to recover any part of my losses??

retailerLoser:

Owned the retail store for 6 months so far and its losing. The seller cheated me, he said it make between 400 to 700 a day, and it only make between 100 and 200. when i bought store he said its for family emergency and he asked only for cash, and i paid 35000 for the retail stores, which is now just losing, i didnt gain a penny, can i sue him??

You might have a claim for fraud if, in fact, he lied about the sales that the business was doing and produced fake reciepts to as proof. Your problem, though, will be proving that he lied. You also have a problem in that you didn't do the kind of due diligence that you should have done to verify what the business actually does. Had you done the due diligence, you may well have seen what the real deal was and known it was a loser. The best thing to do here is take the contract and whatever other documents you have from the deal and see an attorney who litigates contract disputes to see if you have something worthwhile to pursue. I suspect, though, you might have a tough case to make here.

retailerLoser:

The Seller agrees that this Agreement is contingent upon the following conditions: (a) Buyer obtaining a Lease on the said premises or that the existing Lease be assigned in writing to the Buyer.

I didnt have lease and the lease still under his name, would that be any beneficial?

No, not a bit.

You should have had a sit-down with the seller and the landlord and gotten the lease assigned to you or rewritten in your name before you handed over the money.

Since you didn't do that, you waived it.

However, the good news is that there is no hold harmless/indemnification clause in that agreement so, if you closed up the store and walked away, the landlord would have no case against you since your name is not on the lease, he'd have to go after the former owner.

You might get some satisfaction out of that.

Thanks.

Maybe he lied. I don't know. Maybe he was just a really good businessman. What matters is what you can prove. You can certainly discuss it with a local attorney.

As for the lease - problem is you have had the business for a while without dealing with the lease. Why is that? It certainly raises a questino of whether it has anything to do with now trying to get out of the contract.

I think your best bet is to consult a local business attorney. They might be able to find something in your purchase agreement that could build you a case. I'm not sure where you're located, but I can recommend Minor & Brown if you happen to be in Colorado. I worked with a great Denver business attorney at their firm when I had legal problems with my small business.

He is in CA