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JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11396
Experience:  Experienced in business formation and licensing issues
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I signed a GIA with an insurance agency for construction bonding.

Resolved Question:

I signed a GIA with an insurance agency for construction bonding. A large project that I was undertaking went south therefore there was a substantial loss on the project. Currently, the insurance company is accusing me of violating the GIA based on how funds were used. Prior to the project begining the insurance company (in writing) directed me on what bills to pay relating to my other company which was also included on the GIA. My question is since I was not aware at the time that I was violating the terms of the GIA however the insurance company was aware and I just went on the direction does that make the GIA contract non binding. I live in California.
Submitted: 7 years ago.
Category: Business Law
Expert:  JBaxLaw replied 7 years ago.
You are inquiring if the lack of enforcement of the contract would cause the insurance company to waive the enforcement or cause the contract to be otherwise void. This contract probably addresses the issue with a explicit statements that lack of enforcement does not constitute waiver of enforcement at the discretion of the insurance company.

Even if not expressly included as a term, the knowledge of your actions probably does not provide you a defense. It appears that there might have been delayed action, rather than acquiescence. To be clear, this would not void the contract. The only potential would be whether this would be a defense to a suit filed by the company for breach or an attempt to enforce the contract now. Based on the information provided, this probably would not be a succesful defense if you deviated from the express terms of the contract. You should have an attorney review the document in its entirety to be sure there aren't any defenses to consider here.

Thank you

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