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Tennessee Contracts Questions & Answers
1 Answer | Asked in Contracts, Business Formation and Business Law for Tennessee on
Q: If my LLC doesn't have an operating agreement and a member decides to leave do they owe the company for any debt?

A member has decided, of their own will, to leave the LLC. The LLC is in debt and doesn't have an operating agreement. Does the withdrawing member owe any money to the LLC as buying themselves out?

Bennett James Wills
Bennett James Wills
answered on Jan 24, 2023

Depends on the debt. Are they personally obligated? Is the business just in debt? Or does it have a positive fair market value? Typically, without an operating agreement, when a member quits the LLC pays fair market under TCA 48-249-505. But there are other considerations as well. Consult counsel... Read more »

1 Answer | Asked in Consumer Law and Contracts for Tennessee on
Q: Post-Judgment Interrogatories Limitations

How far can I be excepted to travel for this and how often can they subpoena me for this? I have no assets so it seems as harassment once they are aware of that. I was sued 4 counties (>100 miles) away in Tennessee in Chancery court.

Mr. James Charles Wright
Mr. James Charles Wright
answered on Jan 11, 2023

Without more details it is hard to answer. Look up motions for Protective Orders in Tennessee or you may need to hire a lawyer to file one for you. I am not sure whether you are entitled to relief- but that would be one avenue to approach.

1 Answer | Asked in Contracts and Civil Litigation for Tennessee on
Q: what tennessee case law says that a party disputing contractual intent must prove neither party intended a contract?

It is my understanding that it is not enough for one party to prove he/she did not intend a binding contract but must prove that both parties agreed there was no binding contract between them. Is this correct in TN law?

Mr. James Charles Wright
Mr. James Charles Wright
answered on Jan 10, 2023

Both parties must agree to as to the formation of a contract - a unilateral "contract" generally would not be binding. But contracts can be formed by one party requesting an action and the other party performing and the performance is an acceptance- so your question's answer may be fact specific.

1 Answer | Asked in Civil Litigation, Contracts and Internet Law for Tennessee on
Q: If I sign a contract-at school-agreeing that I will not post on social media about a person can I get in trouble if i do
Tim Akpinar
Tim Akpinar
answered on Jan 3, 2023

A Tennessee attorney could advise best, but your question remains open for three weeks. If it's a contract with the school, it's possible that violating it could result in loss of privileges or some form of discipline by the school. Depending on what's posted, it's even possible... Read more »

1 Answer | Asked in Contracts and Elder Law for Tennessee on
Q: When filling out POA for Health Care, there is a section that ask about the "undersigned." Who's the undersigned?

"... by the undersigned, _____________, who is personally known to me or satisfactorily proven to me to be the person whose name is subscribed to the within instrument."

Anthony M. Avery
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Anthony M. Avery
answered on Nov 22, 2022

If you are giving someone a Power of Attorney over you, then you are the undersigned.

1 Answer | Asked in Contracts, Employment Law and Business Law for Tennessee on
Q: I have a check that was written to “buyout” my contract until the end of the month. I don’t agree but I got to eat

It says buyout on my check that has pay due to me via salary plus a little more. I’ve been severely lied to and I will take action but this money is added to my regular salary and I have bills so do I use a without prejudice UCC on the check before I sign. Even if I use the code without prejudice... Read more »

Anthony M. Avery
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Anthony M. Avery
answered on Nov 14, 2022

If you cash the check it will probably be an accord and satisfaction of any debt owed. Either file suit or take the money.

1 Answer | Asked in Consumer Law, Contracts, Products Liability and Collections for Tennessee on
Q: 2-fold issue. A vehicle sold to Carvana is still registered to me, impounded and repossessed.

2-fold issue. I sold a car to Carvana 5/16/21 — they failed to register it to the new owner. It's still in my name, has been impounded somewhere in California and also failed to do a back-out with Bridgecrest on the loan. I've received letters from the CA DMV, San Bernadino Police Dept.... Read more »

Barry W. Kaufman
Barry W. Kaufman
answered on Nov 10, 2022

Time to retain an attorney. It seems you've hit the wall with Carvana.

1 Answer | Asked in Business Formation, Business Law and Contracts for Tennessee on
Q: How do I handle a potential business partner I don't really wanna pay 50 percent or even less.

I have an online business that I made with a friend but everything is in my name included the LLC but he is in a good amount of the footage that our online course provides but his name is literally on nothing except for about half of the videos. I do think he should be payed something but how do I... Read more »

Mr. James Charles Wright
Mr. James Charles Wright
answered on Oct 26, 2022

Your post indicates that you are the only member of the LLC and from this I am assuming all of the online content is owned by either you or the LLC. You don't indicate the agreement with this other person - and you likely should discuss this with a lawyer rather than creating another post. -... Read more »

1 Answer | Asked in Contracts and Landlord - Tenant for Tennessee on
Q: In TN, am I required by law to sign a new lease if my rental property is sold? I have 16 mo left on a 24 mo lease

Based on the reply I received, I need to add more details. There is no clause in the 2-year lease that says the lease is voided if the property is sold. The new owners are buying the house as an investment with full understanding and agreement as part of the purchase that there is a current tenant... Read more »

Bennett James Wills
Bennett James Wills
answered on Oct 17, 2022

Maybe. You should check the terms of your lease. Sometimes there is a termination on sale clause. If not, the new owner would buy the property subject to the lease.

1 Answer | Asked in Insurance Bad Faith and Contracts for Tennessee on
Q: I started getting dental implants and then my insurance said they would not pay for the rest of the procedure.now Inplan

And no teeth do I have a case? I can't keep walking around like this.

Anthony M. Avery
PREMIUM
Anthony M. Avery
answered on Oct 10, 2022

Your insurance policy must be read verbatim in conjunction with your treatment plan. Are the implants covered or not? You will need an attorney to examine the contract and facts. Bad Faith in TN is not very much, so concentrate on Breach of Contract, possibly even in General Sessions.

1 Answer | Asked in Contracts and Car Accidents for Tennessee on
Q: I signed a settlement agreement with my Lein holder for a settlement payoff. Now that my insurance company is paying it

The lein holder is trying to not honor that amount. Is that legal

Tim Akpinar
Tim Akpinar
answered on Oct 9, 2022

A Tennessee attorney could advise best, but your question remains open for four weeks. One would need to see the lien agreement to understand more about the lienholder's reluctance to carrying out its terms. But lien agreements are usually binding. If you have an attorney representing you, it... Read more »

1 Answer | Asked in Consumer Law and Contracts for Tennessee on
Q: How do flex loan companies get around Tennessee's statues 45-12-111. Interest, fees, and charges?

Asking how it's legal for companies to charge triple digit interest rates when TN caps interest rates at 24%?

Mr. James Charles Wright
Mr. James Charles Wright
answered on Sep 27, 2022

I would suggest looking at

https://www.tn.gov/tdfi/mortgage-consumer-lending/flexible-credit/flexible-credit-faqs.html

1 Answer | Asked in Contracts and Car Accidents for Tennessee on
Q: I agreed to a payoff with my lien holder through a signed contract. Now that my insurance is paying it off they said

the contract is null/void because my insurance is paying it out. Is that legal if my settlement amount is less? Can the lien holder disregard that contract

Tim Akpinar
Tim Akpinar
answered on Sep 23, 2022

A Tennessee attorney could advise best, but your question remains open for two weeks. This requires closer examination than is possible in the limited scope here. It could depend on the type of lien and other possible factors. There are certain liens, such as public health liens, that are subject... Read more »

1 Answer | Asked in Contracts and Small Claims for Tennessee on
Q: I inherited a 33 year old Bass Boat. I sold it. now the guy wants his money back. what is my legal position

I did not have the boat for sale. It was sitting in the yard and the individual approached me. I told him that it would float and start up and run. He looked at it three times in in a span of a few months. He asked me again to purchase it and I set a low price and he said he wanted it. He came... Read more »

Bennett James Wills
Bennett James Wills
answered on Sep 20, 2022

Sounds like its his problem now. He had an opportunity to inspect it and it doesn't sound like you concealed the defect. Hopefully your bill of sale says "as is" or with no warranties - even if it doesn't from your brief facts I'd say he wouldn't have a claim against... Read more »

1 Answer | Asked in Contracts and Real Estate Law for Tennessee on
Q: Can I contest a deed if it was signed under false information?

I inherited my father’s property in April and was given false information about the condition of the property as well as the deed. I signed the deed over to my uncle later finding out the information was false. Do I have a case?

Anthony M. Avery
PREMIUM
Anthony M. Avery
answered on Aug 29, 2022

It is doubtful you have a good case to set aside a Deed for Fraud. But you will need to hire an attorney to check out the facts, witnesses, etc. It may not be worth the trouble, but if you do nothing the property is gone . It appears that you relied on heresay and did not even examine the... Read more »

1 Answer | Asked in Civil Litigation, Contracts and Criminal Law for Tennessee on
Q: What kind of action could be taken if I found out my Union Attorney Representation was not registered to practice law?

Nore was there a cosigner for him to practice law approved by State Bar of GA.

What action can I take after my arbitration panel has taken place?

Anthony M. Avery
PREMIUM
Anthony M. Avery
answered on Aug 29, 2022

In TN call the Sheriff or the DA to request charges. It might be grounds for setting aside an adverse decision.

1 Answer | Asked in Contracts for Tennessee on
Q: In the state of Tennessee, do you use a Deed of Reconveyence to release a Deed of Trust ? If not, what form do you use ?
Anthony M. Avery
PREMIUM
Anthony M. Avery
answered on Aug 29, 2022

No, the Note must be satisfied and the Deed of Trust released. Sometimes Partial Releases are appropriate.

1 Answer | Asked in Contracts for Tennessee on
Q: What form do you use, to release a Deed of Trust, in Tennessee ?
Anthony M. Avery
PREMIUM
Anthony M. Avery
answered on Aug 29, 2022

No form is required, but the Release should have the recording information on the Deed of Trust to be released. Also that the Debt is paid in full. Notarization required for recording.

1 Answer | Asked in Consumer Law, Construction Law and Contracts for Tennessee on
Q: What is the max amount of a deposit a contractor can require down from a customer in TN
Henry Ambrose
Henry Ambrose PRO label
answered on Aug 11, 2022

You should probably consult a lawyer to review the contract. If any part of the agreement seems questionable you should make sure of what you are being asked to sign before you sign. There might be more problems than you notice.

Also look at the State of Tennessee website:...
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