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Question added to topic Legal Basics For StartupsAugust 14, 2007

How do you enforce a business contract?

We sold our business to another company based on a contract that laid out terms for payment in regular installments over a couple of years. After a few installment payments, the company stopped making payments. How can we enforce payment?

Absent an arbitration agreement in the contract (or a written consent to arbitrate signed by all of the parties), you may enforce the contract by bringing a lawsuit in the appropriate court.  The court and its location will be determined by the locations of the parties, where the contract was negotiated and/or signed, and/or where the contract was to have been carried out.

Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal  blog.

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