Q: Is it a breach of contract if investor added extra fees post-signing?
I'm based in Mississippi and attempted to secure a hard money real estate loan with an investor from Phoenix, AZ. We signed a contract online, which stipulated an origination fee to be paid, and the loan funds were to be disbursed within one business day upon completion and verification of this fee. I paid the origination fee as outlined, yet the investor failed to disburse the funds and introduced an additional insurance fee post-contract. According to the loan terms, it was a $120K loan at 5% interest to be paid over 12 months, with a balloon payment at the end. Is this a clear breach of contract, and where should I file a lawsuit regarding this breach?
A:
A Mississippi attorney could advise best, but your question remains open for two weeks. Yes, it could be a breach, and it could also be a misunderstanding due to communication. From a textbook standpoint, one party acting on their own does not usually have authority to change the terms of a contract that was agreed upon.
If you involve attorneys, it's possible they may want to review the contract, your communications, and other factors before providing a definitive answer. A Mississippi attorney could advise best about your question regarding which courts, depending on the amount, and whether your contracts involve forum clauses, such as mandatory arbitration, if applicable). I hope you are able to resolve this economically without involving the courts. Good luck
Justia Ask A Lawyer is a forum for consumers to get free answers to basic legal questions. Any information sent through Justia Ask A Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between Justia and you, or between any attorney who receives your information or responds to your questions and you, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask A Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises, or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
