Jump to content
Sign in to follow this  
nolegalscholar

nullifying a contract question

Recommended Posts

If 2 parties enter into a contract for the sale of a client list and a clause in the contract states that the selling party will offer audit insurance that the buying party can then offer to the clients and at a later date the buyer discovers that seller is not a licensed insurance agent or broker, would this nullify the contract.

Share this post


Link to post
Share on other sites

Not necessarily.

 

If the breach can be cured, the contract could still be enforceable. You don't have to be a licensed insurance agent or broker to buy insurance for specific purposes though I don't know what you mean by audit insurance.

 

If the lack of the audit insurance didn't harm either of the parties, the rest of the contract might still be enforceable.

 

Beyond that, one would have to read the whole contract and investigate the details of the breach to make any further comments.

 

Asking "what if" questions typically gets speculative and useless answers (pretty much like the answers I've just given).

 

Tell us what the situation is, who you are in the deal, what state you are located in, what harm is being done to you, how much money is involved, and why you want to nullify the contract.

 

That might get you more useful comments.

Share this post


Link to post
Share on other sites
12 hours ago, nolegalscholar said:

If 2 parties enter into a contract for the sale of a client list and a clause in the contract states that the selling party will offer audit insurance that the buying party can then offer to the clients and at a later date the buyer discovers that seller is not a licensed insurance agent or broker, would this nullify the contract.

 

Impossible to say based on what you wrote.

 

For starters, what difference does it make that the seller isn't a licensed insurance agent?  And, if that is important, why didn't the buyer know that before he/she signed the contract?  What is the nature of the client list being sold, and why might a client need "audit insurance"?  How long after entering into the contract did the buyer discover this fact?  How did the buyer discover this fact?

Share this post


Link to post
Share on other sites

This particular case is the sale of tax clients...well the seller is offering the buyer audit insurance to sell to the clients yet the seller is not a state registered agent or broker. NY requires anyone who sells insurance to external parties to be licensed to sell insurance. Therefore it looks to me that the seller cannot meet the obligation in the contract thereby making the contract nullified....

Share this post


Link to post
Share on other sites
2 hours ago, nolegalscholar said:

Therefore it looks to me that the seller cannot meet the obligation in the contract thereby making the contract nullified.

 

You didn't answer most of the questions I asked.  Please do so and I'll comment further, but for now, I'll tell you that, since this insurance issue appears to have been ancillary to the main purpose of the contract, it is unlikely that this would allow for rescission (nullification) of the contract.

 

 

2 hours ago, PayrollHRGuy said:

The selling part could fulfill his end of the contract by simply providing the name of a company that sells audit insurance.

 

That's unlikely, but we cannot know for sure since we've not read the contract.

Share this post


Link to post
Share on other sites

It might not even be insurance. Here's what google came up with:

 

Quote

Intuit (INTU) is well-known for TurboTax, which millions of taxpayers use every year to prepare their returns. Through a partnership with TaxResources, Intuit offers an audit insurance program known as Audit Defense. According to Intuit, TaxResources will defend your return from audits for up to seven years through the highest available level of appeal. Audit Defense also schedules all audit appointments and handles correspondence and document review for the IRS.

The cost depends on the level of service you choose. For a single year's return, the service $39.99. But for $195 annually, TaxResources will give you audit defense for all years that are still available to be audited, additional tax hotline availability and a review of your federal return each year.

Prices vary widely. Tax Audit Defense changes $100-$150 a year for similar service. Tax Audit charges $50, $175 or $295, depending on tier level.

 

It could be nothing more than a service contract (in spite of calling it insurance) for which an insurance agent license might not be required.

 

I don't know, just throwing that out there until the OP comes back and clarifies.

 

 

Share this post


Link to post
Share on other sites
1 hour ago, pg1067 said:

That's unlikely, but we cannot know for sure since we've not read the contract

 

I don't know why it would be any less likely than someone selling a list and then selling and then selling the product or service to the buyer who is then to sell it to the people on the list.

Share this post


Link to post
Share on other sites
15 hours ago, PayrollHRGuy said:

 

I don't know why it would be any less likely than someone selling a list and then selling and then selling the product or service to the buyer who is then to sell it to the people on the list.

 

That's easy for you to say.

 

;)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...