Legal Question in Business Law in Washington

Being Sued for Breach of Contract

I am being sued for 80K for Breach of contract. I am filed as an S Corp. I did not sign a personal guarantee but my employee signed my name. You can easily tell this was not my signature. I do not have much $ that is why the contract was not paid and need help ASAP. I am a 1 person Company.


Asked on 2/17/08, 11:01 pm

1 Answer from Attorneys

Susan Beecher Susan L. Beecher, Atty at Law

Re: Being Sued for Breach of Contract

The reason attorneys often say, "That depends" is because the details matter in these kinds of questions. Although your employee signed the contract, did the employee have apparent authority to sign? Once you knew about the contract, did you immediately notify the other party that there was an unauthorized signature, or did you act upon the contract? In what way was the contract breached?

If you have been served with a lawsuit for $80,000, it is time to go see an attorney and get help. If you don't properly respond to the lawsuit within the specified time, there could be a default ruling against you, and then the show's over. There are lots of times, especially in business, when legal self-help is appropriate. This is not one of them.

Good luck!

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Answered on 2/17/08, 11:41 pm


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