Contract changes

[Quaere]

What is the name of your state? California

I'm posting this for a friend!

A multi part contract includes one clause that calls for an exchange to happen in the future. Two parties are jointly obligated on a loan that was taken out for Party A's business venture. Party A expects to recieve inheritance money within a few months of the contract signing. The clause calls for Party A to pay half of the loan balance upon receipt of his inheritance money. Party A will also pay in full, any other loans connected to the venture.

Party B, agrees that contingent upon Party A paying half of the loan, Party B will sign over all rights to the business venture to Party A.

Before the transaction can take place, the business venture becomes worthless. Is Party A still required to pay Party B?

thanks!

 

[BelizeBreeze]

What is the name of your state? California

I'm posting this for a friend!

A multi part contract includes one clause that calls for an exchange to happen in the future. Two parties are jointly obligated on a loan that was taken out for Party A's business venture. Party A expects to recieve inheritance money within a few months of the contract signing. The clause calls for Party A to pay half of the loan balance upon receipt of his inheritance money. Party A will also pay in full, any other loans connected to the venture.

Party B, agrees that contingent upon Party A paying half of the loan, Party B will sign over all rights to the business venture to Party A.

Before the transaction can take place, the business venture becomes worthless. Is Party A still required to pay Party B?

thanks!

Unless there is a contingent payment for value clause the fact that the business has no value does not alter the terms of the contract for loan. so I would have to know whether the promise to pay is based on the proceeds of the loan or the value of the business venture.

 

[Quaere]

The clause reads as follows (extraneous crap removed for brevity):

Husband and wife acknowledge that they jointly own a business which is operated by the wife and that they are jointly indebted to Bank A for the balance due on a business loan.

Upon wife’s future receipt of anticipated inheritance, Husband and wife will each pay half the amount of the loan to Bank A and close the account. In addition, wife will pay all other loans related to the business for which husband may have responsibility.

Contingent on wife paying in full the obligations above, husband agrees to transfer and assign all rights to the business, to wife.

 

[Some Random Guy]

The contract does not seem to list any reason for the loan not to be repaid or for any special circumstances in case the viability of the business changes. So contracturally, there is no explicit reason to avoid payment.

What was the reason that the business became worthless? Was it a direct result of anything the husband did? Were there any other obligations put upon the husand in the contract that were not followed?

You may want a lawyer sit down to review the complete contract.