I have a scenario. There is a contract between three persons. The contract between two persons was founf unenforceable due to breach of fiduciary duty. Will the contract survive as to the third person who did not have any fiduciary duty. What are his rights and duties.

Hello:

It would help if you would spell out your situation in detail.

excon

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Originally Posted by excon

Hello:

It would help if you would spell out your situation in detail.

excon

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Okay. Bill and Ray entered into a contract with Sam to market his products. It was found that Bill had a fiduciary duty towards Sam and he breached the fiduciary Duty. So Sam says the contract is unenforceable.So what about Ray who did not have any fiduciary duty towards Sam.Is the contract enforceable as to Ray and whether he is to get damages for the breach.My question is once a contract is found unenforceable is it unenforceable as to the whole contracting parties or whether there is some redress for the party not at fault.

Hello u:

I wanted MORE detail, but I'll have to deal with what you gave me.

It would seem that the relationship between the contractees is NOT UN related. Therefore, if the relationship failed between TWO of the participants, it would be hard for me to believe that the remaining relationship is not also negatively effected.

Therefore, I would say the entire contract is unenforceable.

excon

Here the fiduciary duty is between Aand Cwhereas B is not having any duty towards C.Aand B are not parteners but friends.My question is whether B is entitltled to damages for breach by C. C can claim breach of fiduciary duty against A and hence Acannot claim damages for breach

Hello again, u:

That's a different question. I don't know. Anybody can sue anybody else for anything they want. Proving it is another matter. See a lawyer.

excon

If the contract was between A & B as an entity with C, then B is out of luck. Whether they were in a legal partnership or an informal one, they agreed together to market Sam's products. If Sam made a separate agreement with A & B even though it was a single contract, then B has a case.

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Originally Posted by unnieric

Okay. Bill and Ray entered into a contract with Sam to market his products. It was found that Bill had a fiduciary duty towards Sam and he breached the fiduciary Duty. So Sam says the contract is unenforceable.So what about Ray who did not have any fiduciary duty towards Sam.Is the contract enforceable as to Ray and whether he is to get damages for the breach.My question is once a contract is found unenforceable is it unenforceable as to the whole contracting parties or whether there is some redress for the party not at fault.

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Why would Bill believe what Sam says instead of getting a (paid) legal opinion?