PURCHASE OF A BUSINESS: I want to take over a travel agency business. I am willing to take over the business as a going concern – are there any legal traps to avoid in taking over the business?
Of course, this would have to go through a lawyer because the lawyer would have to investigate all existing contracts the present vendor has with the owner of the property of the business and others – regarding the assigning of the rights and liabilities under all existing contracts. All assets and liabilities would have to be checked out. But you will find the best way to deal with the matter is for your solicitor to enter into a new contract between yourself and the owner of the property –and with anybody else involved in the business. One important condition of purchasing the business is to make sure that the vendor of the business does not open a similar business within at least some 30 kilometers from the shop for the next six years. But the conditional time and distance are negotiable.