More details to this question:
I just signed a contract with a company to race professional motorcycles the national circuit. The contract is unformal but we both signed to the conditions. The contract is for 5 years worth $625,000. the contract sait that it is binding on the day it was signed but dosent start until 1/1/2014. Now the owner who signed the contract is pulling out. The contract states that if the company breaches the contract that they will be responsible for the amount of the contract. Do I have grounds for a lawsuit. Thanl you
1 ANSWER
A person who contracts can not just "pull out", but can only cancel the contract for reasons, or during the time period, allowed under the contract. Assuming that your contract did not give the company the right to cancel it in the way they did, you can sue for breach of contract. One problem I can see, however, is that you signed the contract with a "company". That means that it is the "company" (assuming it is a corporation, llc, or other legal entity) that it liable on the contract, not the individual owners of the "company". If the "company" doesn't have any assets to pay you damages, you probably will not be able to collect from the individual owners (with some rare exceptions).
Answered on Aug 08th, 2013 at 2:29 PM