Breach of contract for false promise to acquire?

[elizjames]

I work for a small internet startup (2 fulltime employees) that has been negotiating its sale to a larger company for several months now. The larger company made us a written offer (over email) to buy our company (for <$150K) in late August. The offer was not signed, nor was it officiated by a lawyer. Nonetheless, we accepted the offer, and on the strength of that offer I relocated to the city where the larger company is based and turned down other job offers, while my company closed down its office, sold its furniture, and stopped pursuing other acquisition offers. We were at a standstill in the negotiations for over a month because the larger company's CEO was opening branch offices and was unable to meet with us. Now the larger company says that it has changed its mind and cannot afford to go forward with the deal. I personally have lost two months in which I could have been working at another job, while my company has lost its chance at other deals. What can we do? Can I personally sue for damages, or can my company?

 

[Tracey]

You relied on a letter of intent to make a contract if all the details could be worked out. This was unreasonable & you aren't entitled to any damages. It's not a contract until you've got signatures!

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws. [email protected] - please include some facts so I know who you are!