Contractual obligation

[RSeuring73]

Illinois. My husband and I own a restaurant. When we opened he signed an
agreement to bring on a salesperson and his 'manager'. I did not sign the contract. This man and his salesperson were supposed to generate a half million dollars in sales within the first year. We were to pay the 'manager' 800.00 a month and a salary amount to the salesperson plus expenses.
By the third month with nothing generated we were going down fast. By month four we had to end the agreement. We were behind on the payments to the 'manager'. We told him we would pay him eventually even though we
had reaped very minimal benefits from his expertise. He is threatening legal
action. Is this contract binding without my signature? We have a silent partner as well and he didn't sign the contract either. We are just trying to
keep our business going at this point and are so behind on other pressing
obligations that this situation and payment has had to take a back seat. We are trying to avoid bankruptcy at all costs.

 

[pattytx]

Unless it could be deemed an implied verbal contract, probably not. However, you will need to consult a local attorney, because contract law is very case- and state-specific.

Regarding the Manager position, an $800/month salary is not enough to make the employee exempt from overtime. As a matter of fact, if he was working 40 hours per week, it isn't even minimum wage, contract not withstanding.

 

[Ohreallynow?]

Illinois. My husband and I own a restaurant. When we opened he signed an
agreement to bring on a salesperson and his 'manager'. I did not sign the contract. This man and his salesperson were supposed to generate a half million dollars in sales within the first year. We were to pay the 'manager' 800.00 a month and a salary amount to the salesperson plus expenses.
By the third month with nothing generated we were going down fast. By month four we had to end the agreement. We were behind on the payments to the 'manager'. We told him we would pay him eventually even though we
had reaped very minimal benefits from his expertise. He is threatening legal
action. Is this contract binding without my signature? We have a silent partner as well and he didn't sign the contract either. We are just trying to
keep our business going at this point and are so behind on other pressing
obligations that this situation and payment has had to take a back seat. We are trying to avoid bankruptcy at all costs.

I have the utmost respect for Patty and I think she is right to suggest getting an attorney because this part gets to me:

he signed an
agreement to bring on a salesperson and his 'manager'

"signed" being the word that I wish I had the magic that some people have to make red.