Southampton, PA asked in Contracts and Business Law for Pennsylvania

Q: Who is the liable party?

Company A and Company B are two separate legal entities each having their own Federal tax ID number.

Company A signed a contract d/b/a as Company B. Which one is the legal responsible party?

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1 Lawyer Answer
Tim Akpinar
Tim Akpinar
  • Little Neck, NY

A: A Pennsylvania attorney would be in the best position to answer this, based on state law considerations. But the question remains open for three weeks. As a general matter, it would be helpful to have additional information. For instance, why did one company sign in lieu of the other? Was it for misleading purposes? Was it to avoid a conflict of interest? As a practical matter, if an attorney for a zealous plaintiff pursued both companies, the answer to the question might lie in how persuasive their attorney was in convincing a jury that both companies were somehow liable. It's somewhat of an open-ended question that in real life could depend on the perception of jurors or a judge. Good luck

Tim Akpinar

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