We sold real estate, businesses and inventory in one escrow. There is some evidence that our signatures were forged on some contracts and submitted to the lender claiming they were purchasing from us for an amount higher than they were. Even though signatures were forged, they got the money. Can I enforce that contract even though I didn't sign it and did not know about it when the loan was issued?
2 Answers from Attorneys
That's an interesting situation. My first reaction, without doing any research, is that lack of a genuine signature on a document is a defense to enforcement by the party that didn't sign (you), but not a defense for the other side. Also, I'd say that the parties' subsequent performance of the contracts as though they were all duly signed adds to the likelihood that a court would enforce the contract(s). Finally, if the buyer has committed a fraud, it seems they'd be less likely to put up a contest that could result in some serious consequences for them when it all became clear to the judge. Before encouraging you to proceed with an enforcement action, I'd recommend having the entire situation reviewed in person by an experienced contract attorney, but at first blush I'd say you seem to have a strong case.
As in suing the buyers for the amount of your contract with them?
Whether the forgery impacts your case will have to be determined in the litigation.
If serious about hiring counsel to help in this, and if this is in SoCal courts, feel free to contact me. Iíll be happy to help fight and get the best outcome possible.