Legal Question in Business Law in California

Re: COD-Recieved product w/o cash

More likely than not if your wife leased the gas station along, you did not sign anything nor have any participation whatsoever, you should be clear of any responsibility. There is an argument though that you participated in the "profits" and those are community property in California and therefore there is a community property debt. That the gas station supplied funds for items of necessity, necessaries of life. Basically though what you need is an attorney to write some letters and see if they will just go away. If they won't than you need someone to represent you in a defensive method so that they do not collect any monies from you.I have been practicing law in this legal area for over 30 years and understand your problem well. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000.

Re: COD-Recieved product w/o cash

Mr. Olden is right about "necessities of life" to the extent the gas vendor attempts to attack your SEPARATE property. However, your half interest in COMMUNITY property is just as liable as your wife's. Family Code section 910 says:

".....the community estate is liable for a debt incurred by either spouse before or during marriage, regardless of which spouse has the management and control of the property and regardless of whether one or both spouses are parties to the debt or to a judgment for the debt."

As to whether failure of the buyer to pay, or the seller to collect, at the time of delivery, when the terms are "C.O.D." discharges the obligation to pay, the answer is almost certainly no.

To help you understand this, ask yourself whether ignoring a bill marked "net 30" will prevent your getting a past-due notice with service charges added, or prevent collection action in court.

If the gas company had been paid and were claiming it hadn't been, the invoices stamped COD might be worth something as evidence of payment. Since the bills haven't been paid, the "COD" stamp just establishes that no extension of credit was intended and therefore the bills are even more overdue than they might otherwise be.

There are a couple of very weak defenses that might be raised based on the "COD," however; one is that the statute of limitations probably started running a bit earlier. The other is that you might argue a waiver due to the gas company's failure to collect and allowing the debt to mount. I don't think either one is going to get you out of ultimate liability, however.

Re: COD-Recieved product w/o cash

You took the gas and you will have to pay.