Posts Tagged ‘breach of contract’

Your Right to Pursue Monies Owed To You Might Be Expiring

Wednesday, May 12th, 2010
The Indiana Court of Appeals recently concluded that creditors pursuing monies owed to them pursuant to an agreement must do so within six years of either the last payment or the date the last payment was due.  The specific case involved a credit card holder.  The court examined the credit card agreement in Jason Smither vs. Asset Acceptance, LLC and held that these types of agreements for lines of credit are contracts.  As such under Indiana law, a lawsuit must be filed within six years of the breach of contract.  If the creditor fails to do so, it has waived its opportunity to pursue the debtor for the debt.

If you have any questions about your attempts to collect an outstanding accounts receivable or monies due to you under (more…)

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Default and Prepayment Language Does Not Defeat a Demand Note

Friday, March 12th, 2010

In a case recently decided by the U.S. 7th Circuit Court of Appeals, the Court upheld that a bank was not liable for breach of contract or fraud for pointing out that the note was payable on demand to the borrower.  In this case, a development company obtained a line of credit.  The line of credit was a demand note, meaning that the bank could demand payment in full at any time of the outstanding balance.  Although the note was not in default, the Bank asked the Borrower to term out a portion of the note with a loan to a related entity and to reduce the remaining availability on the line of credit.   The Borrower was not expecting this request and asked about the consequences if it did not make these changes.  The Bank responded by pointing out to the Borrower that this was a demand note and that it was possible that the Bank could demand payment in full at any time. (more…)

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