Legal Question in Business Law in California

contract

I entered into a contract with a company who was going to sell me a shelf corp and obtain a high Dunn & Bradstreet Paydex score; however, as I moved forward, there were many inconsistencies, inaccuracies and potential fraud, including the company I'm in contract with telling me to lie about my income to another company to get a loan (which I didn't get). They also refunded all my money to my credit cards due to some problem with their merchant account. They want me to resubmit my credit cards, but I want out of the contract now because it seems like a scam. I will refuse to allow them to charge my credit cards again. What are my options and limitations? Can I refuse to pay at this point? What should I tell them?


Asked on 6/25/08, 2:28 am

2 Answers from Attorneys
Cathy Cowin Law Offices of Cathy Cowin

Re: contract

If your analysis is correct and you can demonstrate fraud, you can get out of the contract. Also, there may be other grounds for getting out of the contract if an attorney analyzed it. However, based on the generalized concerns expressed in your post, it is impossible to provide a legal analysis. You are in a gray area and need to obtain a confirmation that you would not be incurring any liability by refusing to move forward on the contract. If there is a question in this regard, an attorney may be able to facilitate a graceful exit. Depending on what was required of the seller and the extent of the problems that you have alluded to, you may be able to claim an anticipatory breach on their part that relieves you from further obligation.

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Answered on 6/25/08, 12:27 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Re: contract

There is no way to answer your question without knowing (1) what the contract says and (2) the details of the incidents you describe. You should consult with a lawyer directly about this.

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Answered on 6/25/08, 2:33 am


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