Legal Question in Business Law in Texas

I am the manager of a small business. The owners authorized me set up a form of advertisement for them. I signed a contract for two months which is what was required. The owners paid the first month but have since refused to pay the second month. It is now 4 months late and the company is threatening to sue me personally. There was a clause in the contract that states "In the event that extends credit to advertiser for services, the undersigned personally guarantees payment of all or any part not paid by the company or corporation named in the billing. Absent written permission by , this personal guarantee may not be revoked." The owners keep saying that this company cannot sue me because I was acting on behalf of this company but I did sign this contract. Can this company sue me even before they sue the small business or even at all?


Asked on 11/10/10, 8:10 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a franchise attorney I can say it's not even close to possible to answer this question. Any attorney needs to see the entire contract, as well as discuss the surrounding facts and circumstances. Consult with a good business or franchise attorney in your area for specific advice.

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

Franchise Attorney

Franchise Foundations APC

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Answered on 11/15/10, 10:04 am


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