QUESTION
What is the Contract Law in this particular case?
Asked on Apr 09th, 2013 on Litigation - Alabama
More details to this question:
Mr. Oliver sold his business to Brenda Buyer, and Brenda promised to assume and pay Mr. Oliver's business debts as part of the agreement. After Brenda took over the business, she refused to pay Herkimer County Trust, (HCT) one of Mr. Oliver's business creditors. HCT, aware that Brenda had assumed and agreed to pay Oliver's business debts, sued Brenda for the amount of their claim against Mr. Oliver. Brenda claimed HCT couldn't sue her on this claim because she had no contract with HCT.
8 ANSWERS
Michael J. Breczinski
Brenda is correct if they have no deal with Mr Oliver to take over his rights. They should sue Oliver and then Oliver sues Brenda (in the same lawsuit ) Brenda will ultimately have to pay.
Answered on Apr 11th, 2013 at 11:35 AM
Ronald A. Steinberg
Well, if HCT sues Mr. Oliver, then he brings her into the suit because she has a contract with him.
Answered on Apr 11th, 2013 at 12:57 AM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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Is this a bar exam or homework question?Aas between the buyer and the seller, the seller can sue the buyer who defaults on the agreement. As between the bank and the original receiver of the loan thast may be a different question altogether.if the loanb was assigned without the agreement of the bank the original party is likely stuck with the debt.
Answered on Apr 10th, 2013 at 3:23 PM
Criminal Defense Attorney serving Anderson, SC
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The David F. Stoddard Law Firm
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I'm a personal injury attorney and this is a Personal injury Q&A. this sounds like scenario I was taught in first year Contracts Law in 1982. If HTC were my client, I'd sue both because Oliver is still primarily liable on the agreement to HCT. If I were answering a question on a law class test, I'd look it up. I think it may depend on whether Brenda and Oliver's intent in making the agreement was that Brenda's assumption of the debt would inure to the benefit of HCT.
Answered on Apr 10th, 2013 at 3:23 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Ask your law professor.
Answered on Apr 10th, 2013 at 3:22 PM
HCT may be an intended third party beneficiary which is entitled to enforce the contract between Oliver and Brenda. I would need to read the contract to be sure.
Answered on Apr 10th, 2013 at 2:39 PM
Chapter 7 Bankruptcy Attorney serving Syracuse, NY
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Andrew T. Velonis, P.C.
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Oh, but she does. She assumed Mr.O's obligations, making her a successor in interest.
Answered on Apr 10th, 2013 at 2:27 PM
James Eugene Hasser
Without seeing the actual sales agreement and knowing more about that particular debt, it is difficult, if not impossible to tell, but it sounds like Brenda may have bought the debt from what you have described, particularly if the debt was assumed and the creditor allowed it. Talk with the lawyer that drew up the sales agreement and see what the intent of the parties was at the time of sale. It may be that the creditor will have to sue Oliver and Oliver will have to sue Brenda. Good luck.
Answered on Apr 10th, 2013 at 1:58 PM