Legal Question in Business Law in California
possible contract fraud
a friend purchased a swimming pool route from a pool company, the contract stated the seller had to notify the property management company of the sell after 30 days - he did not notify the company for 90 + days and the management company will not pay the new owner and the seller of the pools made all employees keep the sell quite until the 90 days so he could get the monies that were held in escrow $53,000 was the price of the 2o pools - the seller has serviced and repaired some of the pools which the contract states he is not to have anything to do with those pools for 5 year period, is there a way to go after the seller to be reimbursed for the pools since he did not notify the management company of the sell and he had the buyer avoid the managers and say he was an employee of said pool company to insure seller got his money, and the management company is not paying their bills to the new owner they now owe him up to30,000 now
3 Answers from Attorneys
Re: possible contract fraud
Your friend seems to have a reasonably good case for breach of contract, and may also have a decent shot at winning a fraud case, although fraud is more difficult to prove because, among other things, you have to prove the defendant's state of mind and intent. The starting point would be for your friend to have a contracts or business lawyer look at the actual contract for sale of the route. An important question would be whether it contains an attorney-fee clause.
Re: possible contract fraud
You've got a lawsuit for the money due, based on fraud and breach of contract. It may be possible to 'persuade' the seller to pay, rather than be sued. Feel free to contact me if you decide to do it right, with counsel. You'd better hope the seller has not 'disappeared' by the time you take action.
Re: possible contract fraud
A lawyer will need to take a look at the contract to see what rights the buyer has. Probably there is a breach of contract lawsuit here, although there may also be a fraud suit as well.
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