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socrateaser
socrateaser, Lawyer
Category: Legal
Satisfied Customers: 39045
Experience:  Retired (mostly)
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Went out of business in early 2009. Our largest client hired

Resolved Question:

Went out of business in early 2009. Our largest client hired my husband & is leasing our equipment. Signed an agreement Fe. 2009, which included an Exhibit C, which is a lease agreement. The bottom of the page states: "We will not actually prepare and sign a lease, rather, we will be acting as such so that we can develop a fair monthly fee." The "lease" was based on a 10 year note. When a piece of equipment became obsolete, he would remove it and change the lease amount monthly and we could sell the equipment. Original lease amount $975 mo., now down to $716.25. My problem is that he wants to now change it to a 5 year lease and drop the monthly payment to $513.60 and depreciate the equipment by 20% per year. Do I have any legal recourse regarding the original signed agreement?
Submitted: 5 years ago.
Category: Legal
Expert:  socrateaser replied 5 years ago.
If the goal was to develop a "fair monthly fee," then that is an enforceable contract, but only to the extent that a court could ascertain the parties' objective intent.

This means having a third party mediator, arbitrator or a court will have to make the determination, unless you can negotiate between yourselves.

Re the 10-year note, specifically, if you have the note, then that's evidence of part of what makes for a fair fee. If you don't, then you will need other evidence (documents, testimony, etc.).

Hope this helps.


And, if you need to contact me again, please put my user id on the title line of your question (“ToCustomerrdquo;), and the system will send me an alert. Thanks!

Customer: replied 5 years ago.

There is not an actual note, but a written statement marked "Exhibit C" which shows in detail how the actual (original) amount ($975.00) was tabulated. There are many other dealings regarding the signed "Memorandum of Understanding" that both my spouse & the owner of the business signed.

Expert:  socrateaser replied 5 years ago.
I suggest that you ask your counterparty to agree to mediate the issue using a retired judge. The judge will be able to tell you what the likely outcome of the dispute will be -- and, he/she will be able to tell you how much money you will waste on legal fees (I'd estimate about $20,000 per side).

A mediator will probably run you about $1,200 ($600 each, if you split the costs). In my experience, it's worth the money to try this route first, because it gives both sides the security of knowing that the mediator is not on either side, and he/she is just "tellin' it like it is!"

For a mediator referral, see this link.


And, if you need to contact me again, please put my user id on the title line of your question (“ToCustomerrdquo;), and the system will send me an alert. Thanks!

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