Legal Question in Real Estate Law in New Jersey
Interpretation of notification requirements in a contract
Person A has a contract (contract X) to buy real property from Person B. Person A then executes a second contract (contract Y) with Person C which assigns all his rights in contract X to Person C. Lawyer J presenting Person C who wrote contract Y have inserted this clause in contract Y.
''For purposes of this Agreement, all notices, correspondence, telephone calls and faxes shall be made to the following named individuals:
i. - Lawyer J for Person C who prepared Contract Y
ii.- Lawyer K for person A who reviewed Contract Y''
Now, the question is, once Contract Y is signed and executed by Persons A and C, and person C pays Lawyer J for preparing contract Y and then decides to longer be represented by Lawyer J, and hires new Lawyer L, then is Contract Y still enforceable using Lawyer L and not using Lawyer J? Can Lawyer L or Person C contact Person A to buy the property without involving or paying Lawyer K - whose name remains in the above clause of Contract Y? Does the above clause in contract Y restrict or prohibit direct communication between Persons C and A to proceed to close on the property? Does the above clause mean that Person C must use continue to use Lawyer K to buy the property?
1 Answer from Attorneys
Re: Interpretation of notification requirements in a contract
You have made this more complicated than it needs to be. If any party to a valid contract decides to change attorneys, they have the right to do so and the obligation to pay for services rendered. The existing clause will be modified, when the new attorney advises (pursuant to the applicable notice provisions) all interested parties and their attorneys of the change. The modification will supercede the original language, and all further communications should be with the new attorney.