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Richard, Attorney
Category: Business Law
Satisfied Customers: 55444
Experience:  32 years of experience practicing law and a businessman.
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I added three new members based upon the representation and

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I added three new members based upon the representation and warrant items in the Newly drafted Operating Agreement for my LLC. I have quickly realized that these representations are not enforceable. Can I revoke the Operating Agreement and go back to the Operating Agreement that was in effect prior??
Submitted: 5 years ago.
Category: Business Law
Expert:  Richard replied 5 years ago.
Good evening. Can you give me a bit more detail about the what provisions are not enforceable, the circumstances of these new members, etc.? Thanks.
Customer: replied 5 years ago.
For consideration into my LLC one of the representation was that a competitive company would be dissolved. Turns out that neither of the three new members has the authority to follow through. Also, there are other similar representations where a signature on the new operating agreement the new members) do NOT have the authority to carry out. Prior to these three new members being considered to join the LLC I was the only member.
Expert:  Richard replied 5 years ago.

Thank you. Because they misrepresented their ability and/or authority to do what they were warranting and representing, you can rescind your issuance of any ownership to them. They are in default, which gives you the right to rescind the transaction. In addition, if you suffered any damages as a result of their misrepresentations, you would have the right to sue them for those damages. The result would be that you would go back to the single member operating agreement in effect before their admission.



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