The Transfer of Unearned Deposits

September 24th, 2007 quantum

Many times buyers will encounter the issue of whether to include the unearned deposits in their deals or not. Moreover, a change in ownership can often impact the quality of work provided or services rendered. These issues can add complexity to a transaction. Below, we have tried to shed some light on the issue. The following scenario offers a way to proceed under a particular set of facts.

“If someone wants to purchase a bakery and the seller has accepted deposits from customers for future work that would occur after COE, what should be stipulate in the offer? As in the case of a specialty cake like a wedding cake, the person who originally contracted with the seller would be distraught to learn that there is a new owner and all cake designers have their own style, however standard. Should a buyer ask the seller to contact all people they have contracted with to notify them of the sale or would a publishing of notice of sale in the paper as required by escrow be sufficient? Another issue is that a 4-week escrow period is not much time to contact a bride and tell her that the person who was going to do her cake will no longer be doing it (doesn’t give bride much time to find another baker). Doing this might arise legal issues. A seller wanted to keep the deposits, have the buyer collect the remaining balance then make the cakes.”

The solution to the problem is given below:

Answer:
The deposits represent an asset of the business which should be transferred to the buyer. In the event that no services have been rendered through COE toward making the cakes, then the seller would not be entitled to any portion thereof. In the offer, we would suggest that you negotiate for a Management Assistance – Training period which would cover the period of time during which it would take to fulfill all of the pending wedding cake orders. In the event, the Seller was available for guidance, etc., we would further suggest not alerting the customers of any change of ownership and seek the Seller’s design and input advice as necessary for each cake.

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Business Buying Made Easy by Quantum™ Business Solution Network

September 20th, 2007 quantum

In yet another initiative to provide easy and convenient services to our esteemed clients, we have introduced an intelligent software for search and identification of business opportunities that will make the business buying procedure very interesting and informative . The software gives a vivid and comprehensive description of numerous business opportunities according to your business purchasing criteria.

Information of all the new business listings would be available to you once you subscribe to our software. The software has to be operated by the business buyer himself and we will co-ordinate with your choice of listing and provide you with regular updates and progress. The software enables us to send you an email alert whenever a new business listing is updated or some changes have been incorporated in your account.

We took out a press release to announce the launch of this software from which the following excerpts have been taken:

“Announcing the release of the software, Mr. Kenneth Sherman, President and CEO of QBSNet said, “You set the purchase criteria and our software finds the business listing that best match your requirements. Finding new business for sale in California couldn’t get easier than this!”

He further added, “Our business buying software provides the users with unlimited business opportunities, presenting them with a platform for locating and identifying qualified business opportunities. We have developed a comprehensive network of accountants, attorneys, bankers and others leads, which are aimed towards exploring multiple qualified business opportunities that fit our clients’ criteria. This is achieved as we maintain a database of qualified business opportunities”.

You can view the full press release by going to
www.prleap.com/pr/89678/
or
http://www.qbsnet.com/buying-business-in-california-software.php

Our aim is to allow our clients to get easy access to profitable business opportunities for them. This business buying software is an initiative in this direction.

Keep visiting our blog for the latest developments in and around our company.

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