Legal Question in Business Law in Arizona

Fraud in the inducement

One year ago I entered into a business contract of an existing brokerage located in Florida. I was told and sent in writing that there were 173 brokers, as it turns out there are approx. 20, not producing the sales he stated. I was also told by the previous owner he would assist in recruiting new brokers as he stated various times both by telephone and emails. He never did this. Also, that he would call ALL the major brokers who produce revenue to enlighten them of the change and encourage them to do business through us. He only contacted one and had excusses for others. These were important terms, not in the contract, but in the sales presentation that greatly encouraged and enduced us to purchase this business, leaving us handicaped.

Since the business is not producing enough revenues to meet stated time tables, he is threatening suits for money due him. My partner has gone banckrupt leaving the burden on me. Before he said he would take the business back, now he won't. He received $52k equal to his last yr.

First, do I have to pay this or would I have a counter suit for fraud and major misrepresentation? Do I have a case? Next, since I am broke also, do you know of a pro bono attorney?

Thank you, Tom Patti


Asked on 5/09/07, 11:22 pm

1 Answer from Attorneys
James Jenkins Jenkins Law Center PLC

Re: Fraud in the inducement

Your question is one of Florida law, not Arizona.

You have a good defense if you have witnesses or evidence. but is you are insolvent anyway, and cannot defend yourself, you might consult with a bankruptcy attorney. Mark Atchley is a good one, in Mesa, Arizona.

Remember the three rules of successful contracts:

1. Always get it in writing.

2. Always get it in writing.

3. Always get it in writing.

Best regards, and good luck.

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Answered on 5/10/07, 1:07 am


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