Q: New board of non profit told money was owed on a contract we have no knowledge of. No one can produce contract and the
previous members with limited knowledge are saying the other party is actually at fault and owes us. Are we liable for a contract we didn't sign and do not have a copy of?
A: If a creditor claims that the non-profit owes money, then the creditor has to provide proof of that claim, such as a written contract signed by an authorized board member or officer of the non-profit, unless the creditor claims it was an oral contract. If the non-profit refuses to pay, the creditor could sue, but would have to submit evidence to the court to prove its claim. The non-profit should retain legal counsel to advise the new board how to conduct proper operations and to respond to the creditor. Use the Find a Lawyer tab to retain a local business attorney to advise the non-profit.
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