How can I hold a non-entity responsible for a contract?

Full question:

If you have entered into a contract with an individual that proves to be a non-entity what is the legal process that must be done to get that persons corporate or other personal affiliations responsible for the monies awarded in that con tract? In other words if I know this non-entity's legal name and business can I just name them before the court to get satisfaction?

  • Category: Contracts
  • Subcategory: Assignments
  • Date:
  • State: California

Answer:

There are several options based on the specifics of your situation. You may have the other party agree to be a guarantor or surety, or you could assign the contract to them, which would relieve the original party of liability.

Apparent authority is a concept in agency law. It occurs when a principal, like a corporation, suggests to a third party that an officer or agent can act on its behalf, and the third party relies on that indication in good faith. This defense is used when actual authority does not exist. If successfully raised, the principal cannot deny the authority of the officer or agent.

For example, if someone without authority is given company materials or allowed to work from the company office, they may have apparent authority. This means they could make binding agreements, such as price quotes for goods or services.

If you decide to file a lawsuit for breach of contract, you can name any parties you believe may be responsible for your claim in good faith.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

A contract that has no legal effect is often referred to as a void contract. This can occur if the contract involves illegal activities, lacks consideration, or if one party is not competent to contract, such as minors or mentally incapacitated individuals. Since a void contract is unenforceable, neither party can seek legal remedies for breach. It’s important to ensure that all elements of a valid contract are present to avoid this situation.