Legal Question in Business Law in California

Going out of business

I had a major car repair done, and the owner agreed to accept payments for the fees. I paid half down to get the car back, and when I went (the next month) to make the first payment, the doors were closed. Upon further investigation I found out the place had gone out of business. Am I obligated to pay still?


Asked on 4/01/03, 3:54 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Going out of business

Someone, somewhere, still holds a claim against you. The questions are, however, who? and will they ever attempt to enforce it?

I think you should make a reasonable attempt to locate the former owner or someone else (such as an estate executor or bankruptcy trustee) with power to enforce the debt.

If this fails, wait for the statute of limitations to run out, then forget it. This is usually two years on an oral contract or, as is more likely, four years on anything supported by a writing signed by you.

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Answered on 4/02/03, 10:37 pm


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