Legal Question in Credit and Debt Law in New Hampshire

Multiple breaches of contracts from business transfer of ownership

I have provisions of a business transfer/buy-out contract(1/02) that are unmet: 1. old debts were to be reconciled without any ongoing liability to myself, and 2. a car for which I co-signed was to be refinanced, removing my name. The initial lease agreement for the car includes my signature with the notation ''for xyz, LLC''. The car was turned over to the new partner. In 1/03, an accident caused 5K damage, again breaching a contract that clearly stated full insurance coverage at all times. Now the lease company is stating that 3 payments are overdue and that they will reposess the car, auction it, and bill me for the difference. Can I sue pre-emptively before I have to pay almost 7400.? Would I sue him individually, or he and his partner (who originally had the car) as a business entity? They both own houses and have steady jobs. And most importantly, what are the limits of liability as guarantor/ co-signer? I have at least two contracts stating that I cannot be held liable for any and all debts incurred by the company, that they will pay all debts, and that they will notify all creditors. Beyond the car debt, there is over 10,000. outstanding. Thank you.


Asked on 7/07/03, 10:44 pm

1 Answer from Attorneys
Roy Weddleton Granite Law

Re: Multiple breaches of contracts from business transfer of ownership

Contact a lawyer immediately. Do not even think of trying to address these issues over the internet. It sounds like you are in a strong position but if you do not provide the proper proof, you could find yourself on the wrong end of a guaranty.

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Answered on 7/08/03, 8:23 am


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