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Contractor Did Not List His Legal Business Name On Contract. Is The Contract Enforceable?

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MustangGuy347

New member
What is the name of your state? PA

Hopefully someone here can shed some light on this matter for me. Long story short, I entered into a contract with a general contractor for the construction of my new home. I have been moved into the home but there are multiple problems with the construction. These defects have been verified by third party inspectors. Despite the third party reports, my general contractor refuses to fix the problems.

My contract states that any disputes must go to binding arbitration through the AAA. This can be an expensive process and it's my understanding that I am unable to recover my legal costs in a judgement.

I was reviewing the contract and doing some research on the contractor and came across the following:
  • The general contractor has an LLC. Let's say his legal business name is Smith Homes, LLC.
  • He has also registered a fictitious, or DBA, name with the state called Smith Homes.
  • My construction contract has his business logo in the top left corner. The logo only states the DBA name, Smith Homes.
  • In the top right corner of the contract it does list his state registration number.
  • The contract states the following: "This contract made on 5th day of March 2018, by and between John Doe (my name) hereinafter called the owner and Smith Homes hereinafter called the contractor.
  • The signature line on the bottom simply states "Contractor" and then a place for the general contractor to sign.
  • Nowhere on the contract does it list the full legal name of the contractors business, Smith Homes, LLC.
From my research, the DBA name can enter a contract if it is noted that it is a DBA of the legal company name when the parties are introduced at the beginning of the contract. You might write, for example, "Smith Homes, LLC, d/b/a Smith Homes."

With all of that said, is this contract enforceable since the legal name of the contractor's business was not stated in the contract? Also, since the contractor signed his name at the bottom of the document, could he be personally liable in a lawsuit?

Thank you all in advance!
 


Taxing Matters

Overtaxed Member
With all of that said, is this contract enforceable since the legal name of the contractor's business was not stated in the contract? Also, since the contractor signed his name at the bottom of the document, could he be personally liable in a lawsuit?
The contract is presumably enforceble though of course I have not read it to be sure of that. The next question is which is the proper person to take to arbitration, Mr. Smith or Smith Homes, LLC? The contract as you describe it makes no reference to the LLC. It simply uses the trade name "Smith Homes" which I assume is trade name registered to him personally and not the LLC. The LLC would not need a trade name "Smith Homes" if the LLC is called simply "Smith Homes LLC". So the chances are that Mr. Smith is the one responsible for the contract and the one liable for the breach. You could (and probably should) include both Mr. Smith and Smith Homes LLC as defendants to cover each possibility. Note that arbitration is generally cheaper than suing in court.
 

quincy

Senior Member
What is the name of your state? PA

... With all of that said, is this contract enforceable since the legal name of the contractor's business was not stated in the contract? Also, since the contractor signed his name at the bottom of the document, could he be personally liable in a lawsuit?
...
Although contracts need to be read in their entirety to determine if they are enforceable as written, I see nothing in the little that you have described that would make the contract unenforceable.
 

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