Legal Question in Business Law in Minnesota

Breach of Contract
I recently signed an LLC agreement with a guy who was essentially financing the purchase of my business. He pledged $100,000 towards the business and had 30 days to deposit the money. He repeatedly said the wire was sent but there were problems with the bank. Needless to say, we still don't have the money.

The business proceeded to sign contracts with electricans, architects, plumbers, etc. These vendors proceeded to start the work and now we have bills due, but no money from this partner. I know I can eliminate him from the partnership based on the wording in the LLC agreement, but is there anyway I can go after him for pledging money and then entering contracts and not fulfilling his obligation?

Thanks!
Steve

Asked on 5/14/08, 4:42 pm

3 Answers from Attorneys

Maury Beaulier612.240.8005 Minnesota Lawyers

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Re: Breach of Contract

is not possible to make a reasonable asessment based on the facts provided. The contracts would have to be reviewed to determine what specific obligations were provided for in the contract and whether reliance on the contract, with respect to incurring debt, was reasonable.

For a consultation call 612.240.8005 or visit minnesotalawyers.com

Answered on 5/14/08, 5:33 pm

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Chad Johnson Hellmuth & Johnson, PLLC

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Re: Breach of Contract

Based on the facts provided, I believe that you have recourse against this person for failing to provide the promised pledge. If you wish to discuss, contact me at the telephone number below.

Answered on 5/14/08, 4:46 pm

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