I have a landcontract and the person filled for bankruptcy. Can I just walk away and quit paying since he has not upheld his end of the contract?
2006-11-29 03:01:27 · 8 answers · asked by someonefromsomewhere 2 in Politics & Government ➔ Law & Ethics
No you can't. Just because someone else has breached the contract doesn't always mean that you can just not fullfil your end of the bargain.
2006-11-29 03:09:45 · answer #1 · answered by On Time 3 · 0⤊ 0⤋
Ah, why does MLaw always beat me to the best questions?
He's right--declaring bankruptcy does not necessarily mean that the landlord has not upheld the end of his contract. Oftentimes, a material breach by one party will excuse performance by another, but not always, and most likely NOT in this circumstance where the person may or may not have breached by declaring bankruptcy (what does your lease say? Is that an act of default by the LANDLORD? Probably not.) If the trustee or the landlord has done something like kick you out of the property, that may be a different story. But simply not paying is not a good idea at this juncture. Seek legal advice. If this is a residential property, legal aid societies will probably help--they're very good with landlord/tenant issues. If this is a commercial property, retain counsel. It will be worth it.
2006-11-29 03:25:32 · answer #2 · answered by Perdendosi 7 · 0⤊ 0⤋
What you describe puts you in a tougher position than you were in before. If you owe on a real estate contract, a mortgage or private sale, your debt now becomes an asset of the bankruptcy court. The bankrupt debtor has to put all of his assets before the court and his equitable title over the property, represented by your deed of trust on the land, is part of that asset assessment. You will have to continue paying and cooperating with the bankruptcy trustee until the case is settled. At that time, you may or may not have a new owner to pay.
2006-11-29 03:55:26 · answer #3 · answered by rac 7 · 0⤊ 0⤋
No. In fact, you now have a new & tougher person to deal with: The Bankruptcy Trustee. ALWAYS talk to a lawyer before you try to remedy a contract breach.
2006-11-29 03:08:42 · answer #4 · answered by Anonymous · 1⤊ 0⤋
NO! This is a mistake that a lot of people make. I'm a little rusty on my contract law, but my memory is that you need to demand performance within a period of days. Otherwise, if you fail to perform and he later performs his end of the deal, you're in breach. If you're confident that this guy can't perform, however, you can conflidently walk away without fear of you breaching. it's a risk.
2006-11-29 03:11:52 · answer #5 · answered by Two E 2 · 0⤊ 0⤋
If he breaches the contract, I'm pretty sure that you are not required to continue paying. In fact, you may be able to get back the money you've paid if you don't receive what you're paying for.
2006-11-29 03:10:25 · answer #6 · answered by tannen2004 3 · 0⤊ 0⤋
i don't know if i'd be that irresponsible about it, to just quit paying. if someone doesn't hold up their end of a contract with you, seek legal action.
2006-11-29 03:09:11 · answer #7 · answered by practicalwizard 6 · 0⤊ 0⤋
I would talk to a lawyer about this at once He or she that you talk to can help you make the better decision on this case of yours.
2006-11-29 03:14:17 · answer #8 · answered by dctlady2005 1 · 0⤊ 0⤋