Legal Question in Construction Law in Virginia

Breach & Fraud

My friend is the owner of a small const. co. His cust couldn't make the first draw but asked him to keep working but he stopped until he was paid-the cust never paid for the work done & demanded the deposit back even after work had been performed. He & the customer signed a contract under an LLC but the company didnt become an LLC until 4 days later. The paperwork was submitted prior to signing the contract but wasn't official until after. Is this considered fraud? Can they claim this as fraud? What can he do for the breach of contract? Is the contract valid?


Asked on 12/03/07, 3:02 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Breach & Fraud

The only fraud here would apply to the party claiming that the contract was invalid because the LLC paperwork had not been formally processed at the time the instrument was signed.

Of course, the contract is valid (assuming that there are no serious infirmities yet to be disclosed), and if it has been subject to

a material breach, the injured party should sue in general district court if no compromise settlement can be reached.

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Answered on 12/03/07, 4:42 pm


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