Legal Question in Credit and Debt Law in New Jersey
Breaking a contract
My husband signed a personal guarantor note with a credit company while he was working for a business he was a partner in. The contract stated he would be responsible (along with 4 other partners) for any past, present, or future debts.He did not reallize what he was signing. The company lawyers just gave him papers and told him to sign and like an idiot he did without reading them.He has not been with that company now for 10 years(1996). He resigned as a partner and a worker. He received a notice in the mail that he was being sued for over $300,000. for construction equipment that was purchased in 1999 that the company didn't make payments on. We have resigned ourselves to the fact that we will have a judgement against us for this loan, but how can we get out of this contract for any future loans this company may take out? We have been told that you can't break a contract. The credit company refuses to release him from this agreement. How can you be held accountable for ALL FUTURE debts, even after you have resigned and have nothing to do with a company???
He even found the equipment in question, gave the credit company the information and they repossed it and sold it, thanks to my husband's detective work?
Please help!
2 Answers from Attorneys
Re: Breaking a contract
I am quite surprised that, with that amount of money involved, you have not already gone to an experienced attorney who handles litigation, collections and commercial law. Please, please go see a lawyer, today.
You have given some indications that you may have valid defenses to this lawsuit, and you should take steps to cut off any future claims. The fact that this is so old may prevent them from coming after your husband; I would need more facts to be able to determine this.
You have options, but you need to know what they are and you need to act quickly to protect yourself. You really need a good lawyer, immediately.
If you would like, give me a call. My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru, and I will give you a free initial consultation.
Disclaimer: you can not rely on the advice of an attorney given over the internet. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.
Re: Breaking a contract
This is definitely not a matter that you should be trying to handle yourself. There is a lot of money and future exposure involved.
From the facts as you have reported them, it is not clear to me that you should be liable even for the debt that you seem to concede. Some facts may support a determination by the court that your husband is not liable for the debt in suit. Additionally, you correctly sense that there is strong reason to ensure that there is no future liability.
This is the type of matter that is highly dependent on the specific facts such as the partnership agreement and loan documents. Not much more can or should be said in a public forum. If I can be of further help to you, please feel free to call. My contact information is associated with this reply.
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