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socrateaser
socrateaser, Lawyer
Category: Employment Law
Satisfied Customers: 37960
Experience:  Retired (mostly)
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1) Is a contract illegal or voidable if it results in fraud

Customer Question

1) Is a contract illegal or voidable if it results in fraud to a third party, and,
2) Is a contract illegal or voidable if the contract requires one of the parties to the contract to breach a preexisting contract with a third party.
Submitted: 1 year ago.
Category: Employment Law
Expert:  Dwayne B. replied 1 year ago.
Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts. 1) A contract to commit an illegal act is unenforceable. 2) No, that doesn't make the contract illegal or voidable by any of the parties to the contract.
Customer: replied 1 year ago.
1) Your answer is quite generic and i would assume fraud of any kind is an illegal act..
2) What about the third party? I am the third party. let me explain and rest assured I will compensate you for your help and any case law you can throw my way.
Dwayne, this case involves me (Kody Kothmann) selling 4 properties to ***** *****, who secretly got loans from Genesis tax Loan Service to pay the taxes on the properties and transferred the tax liens to Genesis. Genesis secured their loans to Morgan with deeds of trust on the same properties already mortgaged to me (Kothmann) with deeds of trust to Kothmann. Morgan granted deeds of trust to Genesis with a first lien on the same properties already granting me (Kothmann) deeds of trust with a first lien interest.
My ultimate goal is to prove that the Genesis/Morgan contracts (deeds of trust) are illegal, and if successful, go after these predatory lenders for actual and punitive damages. You may have other ideas but I would at least like these 3 questions answered.Is a contract illegal;
1. If the Genesis/Morgan contract requires one of the parties to the contract to breach a preexisting contract with a third party (Kothmann).
2. If the Genesis/Morgan contract requires one of the parties of the contract to commit fraud against a third party (Kothmann).
3. If the Genesis/Morgan contract is secured by a mortgage on the same property already mortgaged to a third party (Kothmann).
Expert:  Dwayne B. replied 1 year ago.
Unfortunately, you've changed your initial questions and now added three more on which require the rendition of legal advice or a legal opinion which the website prohibits us from providing, as the click throughs explain. I'll opt out and open this back up to other experts.
Expert:  socrateaser replied 1 year ago.
Hello, Different contributor here. Please permit me to assist. You asked: Is a contract illegal:1. If the Genesis/Morgan contract requires one of the parties to the contract to breach a preexisting contract with a third party (Kothmann). A: "A contract to do a thing which cannot be performed without violation of the law" violates public policy and is void. See Lewis v. Davis, 145 Tex. 468, 199 S.W.2d 146, 148-49 (1947) You allege that the subject matter of the G/M contract is to breach a contract with a third party. This is not illegal., because illegality with reference to a contract generally implies a violation of criminal law (where the illegal act appears on the face of the contract; see Lewis v. Davis, 145 Tex. 468, 199 S.W.2d 146.). However, the alleged act may be a common law tort, committed by the party who is not in privity of contract with the third party, who is attempting to induce the party in privity to breach their contract.The elements of intentional interference with the contract are: "(1) the existence of a contract subject to interference; (2) a willful and intentional act of interference; (3) the act was the proximate cause of the plaintiff's damage; and (4) actual damage or loss occurred." Holloway v. Skinner, 898 S.W.2d 793, 795-96 (Tex.1995) 2. If the Genesis/Morgan contract requires one of the parties of the contract to commit fraud against a third party (Kothmann). A: Since it is possible to commit criminal fraud under Texas law, this alleged conduct may be illegal, which would void the contract. "Under section 32.46, "the `forbidden conduct' is deception" and deceptive conduct "must be perpetrated with the specific `intent to defraud or harm any person'"); In re EP, 185 SW 3d 908, 912 (Tex. App. 2006), citing Dodson v. State, No. 04-96-00427-CR, 1997 WL 136500, at **1-2, 1997 Tex.App. LEXIS 1450, at *4-*6 (Tex. App.-San Antonio Mar. 26, 1997, no pet.) (not designated for publication). 3. If the Genesis/Morgan contract is secured by a mortgage on the same property already mortgaged to a third party (Kothmann). A: By itself, there is nothing illegal about multiple liens recorded against real property. The underlying issue in all of your questions, is whether or not the intent of the parties who you allege have injured, you intended to deceive you in a manner that either damages you financially, or operates to deprive you of your property rights. And, by property rights, I mean any property -- whether money or real estate. Note: you have alleged some very unique and specific facts, which, in order to fully evaluate, would likely require consideration of many other facts that you have not disclosed. Such analysis is far beyond the scope of services that can be performed in this forum. In order to go beyond the analysis that I have provided here, we would have to take this matter offline and formalize an attorney-client relationship. Most Justanswer customers are interested in a cost-effective, quick, and conclusory answer to their questions. If you are looking for something more substantive, I will be happy to assist you further -- however, please understand that this sort of assistance comes with the customary legal services fees that most people are unwilling or unable to pay. I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.Thanks again for using Justanswer!

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