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Articles Posted in Contract

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Electronic Signatures – How to Prove They are Authentic if the Signer Claims the E-Signature was Forged

Electronic signatures are commonly used in California, especially with real estate contract documents, and are accepted by real estate brokers and escrow officers. But what happens when there is a dispute and the person who supposedly e-signed denies doing so, claiming that the signature was forged? That was the case…

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Failure to Perform A Settlement Agreement is a Breach of Contract, and Attorney Fees Might Be Considered Damages for the Breach – But Oops, Don’t Forget to Prove You Incurred Attorney Fees.

Most Settlement Agreements require parties to dismiss existing lawsuits with prejudice. Ending litigation is the goal of settlement. The agreements also include provisions to recover attorney fees in the event someone has to go to court to enforce the settlement. Lastly, they include provision for the court to retain jurisdiction…

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Specific Performance of California Real Estate Contracts – The Buyer Must Prove that they Satisfied Every Requirement of the Contract

In an action for “specific performance” a party to a contract seeks the court order the other party to perform as required by the contract. One requirement for such an order is that the remedy at law is inadequate – that is, the plaintiff cannot be adequately compensated by the…

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An Affirmative Defense is Not an Action for Purpose of Attorney Fee Awards – How a Court Awarded Fees Anyway, and some Rules of Construction

The award of attorney fees in California lawsuits is governed by the “American Rule,” in which ordinarily each party pays their own fees. However, parties may enter a contract that has an attorney fee provision which allocates attorney fees, usually to the prevailing party in a lawsuit. A recent Northern…

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A California Interference with Contract Claim requires a Stranger to the Contract to Interfere – But the Stranger May Have an Economic Interest in the Contract

California recognizes a cause of action against noncontracting parties who interfere with the performance of a contract. If you and I have a contract, and John Doe (not part of our contract) tells you that I’m a bum and will never be able to perform the contract, and convinces you…

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A Nominal Buyer of Real Estate Had a Contract With the real Owner – Why This Owner Could Not Rescind the Contract, But Was Entitled to Damages

People buy real estate in California through nominal or “straw” buyers for many reasons. Sometimes to hide assets, or to launder money. Maybe it’s for legitimate reasons. Nonetheless, California real estate attorneys usually encounter these situations where the agreement between the parties is oral, and there is no documentation. But…

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Stipulating to a Large Judgment for Failure to Perform a Settlement Agreement – Why It Can be an Unenforceable Penalty

In my prior post, I discussed a decision concerning a settlement that had had a large penalty for failing to make payments. The court found that it was an unenforceable illegal penalty, and not a legitimate liquidated damages provision. Liquidated damages are damages whose amount the parties agree during the…

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Liquidated Damages Provisions – When is it an Unenforceable Penalty?

Liquidated damages provisions in California Business and Real Estate contracts are an attempt to establish ahead of time what the damages for breach would be. Rather than have to prove to a judge what the damages are, the parties agree to what they would be. There are specific statutory restrictions…

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Failure to Disclose – In California Real Estate, the Seller’s Expert Must Deal With The Buyer To Be Considered Seller’s Agent; Otherwise, Their Knowledge Will Not be Attributed to the Seller

In California real estate sales, a typical claim by disgruntled buyers is that the seller failed to disclose some problem with the property that the seller was aware of. The buyer’s cry is that, if the facts had been disclosed, they would have not bought the property, or would have…

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A Guarantor in a Sales Transaction Only Guaranties What is Described in the Document, and the Guarantor May Be Exonerated – How the Courts Determine Liability.

In a sales transaction, there is often included a guaranty, where one party guarantees to pay the debt of another. More accurately, a guarantor is “one who promises to answer for the debt, default, or miscarriage of another, or hypothecates property as security therefor.” (Civil.C. 2787). Thus if you buy…

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