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Asker
Posted about 3 years ago.

It is my understanding that contracts entered by suspended corporations can be voided by the customer, why would a settlement agreement be any different?

Frank Wei-Hong Chen
Frank Wei-Hong Chen, Litigation Lawyer - San Marino, CA
Posted about 3 years ago.

A contract executed by a California suspended corporation is voidable at the demand of the other party, but not void. The suspended corporation may take the steps needed to revive the corporation which in turn would enable the corporation to engage in business, and defend or bring a lawsuit.

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Asker
Posted about 3 years ago.

Yes, I am aware of that. The question I am trying to get an answer to is simply this. Can I void a settlement agreement with a California Corporation if the corporation was under suspended status when the agreement was made?

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Asker
Posted about 3 years ago.

I have not been requested to sign the agreement. It says, we hope you settle this matter by cashing the enclosed check as full and final payment related to your disputed contract damages. My actual damages are $36,000. The check is for $21,000. In the agreement they are basically claiming that they have done no wrong.

Frank Wei-Hong Chen
Frank Wei-Hong Chen, Litigation Lawyer - San Marino, CA
Posted about 3 years ago.

Virtually every settlement agreement would say that the defendant denies admitting liability in the recitals.