| Is this contract even legal?

Is this contract even legal?

M i z z M a r i asked:


My grandmother has commercial land up for sale. She recently decided to use her land and start a business. She contacted Mr. B, a local “community development” type of consultant that would aid her in navigating through the system, put together local developers, and contact lenders. He coordinated a group of said people to discuss the plans of her business.

Mr. B had my grandmother sign an office-made contract at the last minute. The contract (in short) states that he would perform the duties of contacting people, providing resources, and dedicating time to putting her business ventures together. The contract stated that he would receive 10% of development sales and property alterations because of his services.

The business project fell through. The lenders couldn’t lend the amount she needed and the developers Mr. B gathered stated she wouldn’t profit (barely break even). She did not continue with the business plan.

Her realtor, outside of Mr. B’s scope, found a prospect buyer of her land. Mr. B states he is still to receive 10% of the sale because my grandmother signed a contract. His services had nothing to do with the buyer the realtor was able to produce. Mr. B’s services did not produce a buyer, lender, or anything.

Is he legally entitled to 10%? My grandmother was pressured into signing (she owed him 2 months of fees). She is not an educated person and was ignorant of the different aspects of the contract. It’s questionable as to if he simply took advantage of her intelligence in order to increase his personal gain.

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Comments

2 Responses to “Is this contract even legal?”

  1. Doctor Deth on November 8th, 2011 12:13 pm

    she better talk to a lawyer and show him the document

  2. akoni_ls on November 8th, 2011 10:22 pm

    OK, to make it clear, I am not a lawyer and from the sound of it, your grandmother may need to consult one if Mr. B becomes persistent. I would also need to see the contract in its entirety to give the best advice.
    I can, however, tell you that from what you’ve explained, if Mr. B’s compensation was based on profits made from development sales and property alterations, then he would receive 10% of that which would be zero because no development sales or property alterations occurred. Furthermore, if Mr. B was to receive compensation from any profit on the land as a result of work that HE had done, then he would also receive zero dollars because the sell of the property was NOT due to his efforts.

    Good luck. I hope this helps.