QUESTION
Can one contract negate the responsibility of another contract?
Asked on Feb 06th, 2012 on Contracts - Florida
More details to this question:
If I cosign a personal loan as an act of good faith (two signatures are required), can the main signator and the recipient of the full amount of that loan then have a second contract drawn up which states that I am released from any and all responsibility of that debt repayment if he is late in paying or cannot pay? Is that second contract legally recognizable/enforcable under Florida law? Is there any particular verbage which must be used?
2 ANSWERS
Corporate Law Attorney serving Boca Raton, FL
at
Gracin & Marlow, LLP
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Yes, one agreement can cancel out another but you need what they call "consideration" for the release to make it binding.
why are you being released? are you paying or giving anything for it?
Answered on Mar 14th, 2012 at 12:08 PM
Probate & Trust Attorney serving Fort Lauderdale, FL
at
Parady & Zikakis, P.A.
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It appears that you are seeking indemnification from the "main" signatory if the lender seeks to enforce its obligations against you based upon a default. One question you should consider is that if the "main" signatory has defaulted on the loan with the lender, how likely is it that the "main" signatory would honor any indemnification of you? You should definitely seek counsel or, better yet, avoid cosigning the loan.
The foregoing is specific to the law and procedure in Florida. This response does not constitute legal advice as the facts presented are limited and unstated facts will likely impact your particular situation. This response is intended for general education only and does not create an attorney-client relationship. Please schedule a consultation with a local attorney for more specific and detailed answers to your legal issues.
Answered on Feb 13th, 2012 at 2:43 PM