Tustin, CA asked in Business Law, Contracts and Federal Crimes for California

Q: I need to know if I can get out of contract. Possible fraud.

I paid $50,000 to a company that promised to open and after that manage Amazon and Walmart stores for me. They promised a 20-40% return on investment monthly.

It has been three months and no work has been done. It’s very hard to get hold of anybody at the company and all communication is done through emails where they answer whenever they feel like to.

This company continues to actively advertise its services and there must be many more people in the same situation as me.

I need an attorney that can read the agreement that was signed, look at all the details and let me know what can be done here. Thank you.

2 Lawyer Answers
Yelena Gurevich
Yelena Gurevich
  • Studio City, CA
  • Licensed in California

A: Attorneys cannot solicit your business here. This is a forum where we can answer specific questions about general legal principals. You will need to use the find an attorney feature and call attorneys to have consultations and get quotes as to fees for the legal work you may need. Good luck.

Nathan Wirtschafter
Nathan Wirtschafter pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Woodlands Hill, CA
  • Licensed in California

A: To prove fraud you must show: (a) a misrepresentation (false statement, concealment or nondisclosure); (b) "scienter," which means knowledge of falsity; (c) intent to induce reliance; (d) justifiable reliance; and (e) resulting damage. Fraud in the inducement is a type of fraud which occurs when the promisor knows what he is signing, but his consent is induced by fraud, meaning that there is no mutual assent, and the contract is voidable.

Generally speaking, where there is fraud, the damaged party can ask for either damages or rescission. Damages means payment of money. Rescission restores the parties to the status quo prior to entry into the contract, and, often involves a refund.

A defense to fraud is that the allegedly false statement was not material. Another defense is that the statements were exaggerated sales-talk, which no reasonable person would take as factual.

To recover for breach of contract, you would need to show: (a) an enforceable contract; (b) that you performed all, or substantially all, of the things you were required to do; (c) that the defendant breached the contract; and (4) that the breach caused you harm.

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