Legal Question in Business Law in Texas

My wife went into business with her cousin. After 8 months, her cousin decided she wanted to save money and not pay my wife anymore, so my wife left. My wife and I put up over 15,000 dollars worth of credit card debt to start this business. A contract was signed by my wife and her cousin stating specific dates to make payments back to us, and a final payment date of July 31, 2010. Her cousin is notorious liar, thief, and cheat. She was over one month late with her first payment, and has said that she won't pay everything until after August 31, 2010 which specifically defies said contract.

What are our options to ensure the cousin abides by the payment contract in the future, and to ensure that we get reimbursed at all?

Also, do you think it's necessary to hire an attorney and take this to court, or is there anything my wife and I can do outside of court to ensure we get reimbursed?

Thanks!


Asked on 5/27/10, 5:21 pm

2 Answers from Attorneys
Mark Dunn Mark D. Dunn

Your remedy for breach of contract (the contract about the specific dates of making payments) is to file suit.

As far as doing something outside the courts, you want to be careful about "self-help," which is frowned upon by the law.

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Answered on 5/28/10, 7:48 am
Kevin B. Murphy Franchise Foundations, APC

Any business attorney will say: don't go into business with relatives. Having violated that cardinal rule, what are your options at this point? One of the best is communication - sit down and talk with the cousin. Explain what she owes and try to get her back on a repayment track. Did the contract she signed have an attorneys fee clause? If not, if you have to hire an attorney to file suit, it will be all paid for by you, with no reimbursement by her if you win. Consult with an attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 5/28/10, 8:25 am


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