09-24-2024, 12:08 PM
A legal question for our attorney-posters….
1. Entity A signs a contractual agreement to pay Entity B a set fee if after one year of doing business together Entity A decides to poach assets from Entity B. The set fee is based upon the number of assets poached.
2. Following the poaching of multiple assets from Entity B, Entity A files a lawsuit claiming they do not owe the set fee because Entity A was under duress at the time of signing the contract because to do otherwise would have led to the extinction of their business. In other words, B had A over a barrel and took advantage of their position.
In your opinion, does A have a case? If so, shouldn’t B have known their position was built on a sandy base and would not stand up to a legal challenge? Why in the world wouldn’t their legal staff know this?
College athletics today - a world in which contracts mean nothing and the new motto is “See you in court”.
1. Entity A signs a contractual agreement to pay Entity B a set fee if after one year of doing business together Entity A decides to poach assets from Entity B. The set fee is based upon the number of assets poached.
2. Following the poaching of multiple assets from Entity B, Entity A files a lawsuit claiming they do not owe the set fee because Entity A was under duress at the time of signing the contract because to do otherwise would have led to the extinction of their business. In other words, B had A over a barrel and took advantage of their position.
In your opinion, does A have a case? If so, shouldn’t B have known their position was built on a sandy base and would not stand up to a legal challenge? Why in the world wouldn’t their legal staff know this?
College athletics today - a world in which contracts mean nothing and the new motto is “See you in court”.

