Legal Question in Business Law in Georgia

I started a business that has not succeeded as I hoped. I signed a contract with a software company to provide web-based software where they manage the server, etc. for a monthly fee. The contact does not have a termination clause. There is a "Term" clause that states the agreement will remain in effect for a minimum of 36 months. Tough to swallow but my business has no funds (actually negative funds) and the software company says I can cancel in July 2013, if I cannot cancel I will have to pay 14k+ in fees over the term. In this situation what should I do? Would bankruptcy be the best out? The contract is under the laws of Massachusetts and my corporation is in Georgia. Please help.


Asked on 10/02/10, 4:43 pm

3 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

With that much at stake, take the contract to a lawyer. The answer will depend on the wording of the contract, how your business is set up and whether you signed a personal guarantee, amongst other things.

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Answered on 10/07/10, 5:41 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Bankruptcy for a small business that has closed is often a waste of money and creates more work and hassle. It does not get anyone out of personal liability, and it only prevents meaningless judgments. However, we don't have all the details.

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Answered on 10/08/10, 5:03 am
Kevin B. Murphy Franchise Foundations, APC

The other attorneys are right on point. Has the software company fully performed all terms of the contract? You need to show the contract to a good business attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 10/08/10, 8:01 am


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