Asked in Collections and Contracts for California

Q: signed a coaching contract 2/16 but not able to pay due to illness caused by parasites and is being sued for remaining $

I signed a coaching contract to have someone come in and help me with my business. I put down $1800 in 2/16 and the plan was to start 4/16 and make two more payments of $1800. I kept getting sick and couldn't work enough to cover this and had lots of stress and anxiety. I just found out my water source of 15 years had parasites and that's why I was so sick!! I had two sessions with this coach now she's taking me to small claims court for the remaining $3600 even tho we barely worked together for the 5 month contract. I get I signed a contract but I was not in a mental capacity to fulfill it. The terms for cancelling are confusing but she let me know she was having her lawyer send it to collections. What are my rights?

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2 Lawyer Answers
Sergio G. Chaidez
Sergio G. Chaidez
Answered
  • Collections Lawyer
  • San Diego, CA
  • Licensed in California

A: The terms of cancelling contained in the agreement are important. The terms about performing under the contract are also important. One would need to read those to see how they affect your case. However, you still may have the defense of frustration of purpose, meaning that an unforeseen event (your illness) had frustrated the purpose of the contract--that you receive coaching. This defense has problems, though, because you can wait until you recover from your illness and then receive the coaching. If you actually want to receive the coaching, then working it out so you receive the coaching when you are better may be a good solution. If the relationship has soured to the point where you cannot work with this person as your coach, then it might be a good idea to work out a settlement where you pay this person for the coaching you actually received and then call it even.

Sergio G. Chaidez
Sergio G. Chaidez
Answered
  • Collections Lawyer
  • San Diego, CA
  • Licensed in California

A: The terms of cancelling contained in the agreement are important. The terms about performing under the contract are also important. One would need to read those to see how they affect your case. However, you still may have the defense of frustration of purpose, meaning that an unforeseen event (your illness) had frustrated the purpose of the contract--that you receive coaching. This defense has problems, though, because you can wait until you recover from your illness and then receive the coaching. If you actually want to receive the coaching, then working it out so you receive the coaching when you are better may be a good solution. If the relationship has soured to the point where you cannot work with this person as your coach, then it might be a good idea to work out a settlement where you pay this person for the coaching you actually received and then call it even.

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