Legal Question in Business Law in California
contract
Based upon the wording in this contract: The participation amount and fee are guaranteed by XYZ Enterprises, Inc. and
Michael Gary for payment on the due date stated above. The contract is signed by the named individual as well. Can I sue this person personally for any assets he may have in his own name for not fulfilling his monetary obligation?
6 Answers from Attorneys
Re: contract
If you have a contract and payment guarantee from the company and the individual, then you can sue both. If this is a debt under the $7500 limit of small claims court, do it there. If substantially more than that, you'll need to file in Superior Court, and should consider getting an attorney to do it right, unless you already know the court rules and procedures you'll have to follow. Feel free to contact me if serious about doing so.
Re: contract
You may be able to sue the defendant individually. We would need to see the agreement/note to assist you further.
Re: contract
If a person signs for himself individually, he can be sued personally. We would have to review your documents to assist you further.
Re: contract
If a person signs for himself individually, he can be sued personally. We would have to review your documents to assist you further.
Re: contract
If a person signs for himself individually, he can be sued personally. We would have to review your documents to assist you further.
Re: contract
One has to look at the entire signature block carefully to ascertain whether the signature(s) are intended to bind the individual signator, the corporation, or both. In your case, it sounds as though the contract is signed (and written) to show an intent that both the corporation and an individual be bound, perhaps as to all provisions of the contract, but perhaps each only as to certain obligations contained therein.
I recently had a similar situation where I could not sue the corporation because it was in bankruptcy proceedings, but the owner had also signed in his individual capacity. I used the individual only. I eventually obtained a judgment (for my client) enforcing or awarding damages on all claims that could have been performed by the individual.
Unless there is a good reason not to do so, however, you should sue both the corporation and the individual. You probably can't sue for specific assets, but what you probably can get is a money judgment that is "joint and several" and can be enforced for its full dollar amount against either defendant.
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