Question

Homeowners jim and lisa criss hired kevin pappas, doing business as outside creations, to undertake a landscaping project. kevin signed the parties' contract as "outside creations rep." the crisses made payments on the contract with checks payable to kevin, who deposited them in his personal account. there was no outside creations account. later, alleging breach of contract, the crisses filed a suit in a state court against pappas. the defendant contended that he could not be liable because the contract was not with him personally. he claimed that he was the agent of forever green landscaping and irrigation, inc., which had been operating under the name "outside creations" at the time of the contract and had since filed for bankruptcy. the crisses pointed out that the name "forever green" was not in the contract. should pappas be liable on this contract?

Answer 1

Yes pappas is liable in this contract. As he signed the contract as 'outside creations rep', and there was no account of outside creations. He deposited cheques on his own name in his personal account. Now when the owners filled a suit, he is definitely going to indulge in this scenario, no matter there was a company named forever green landscaping who got bankrupt. If the cheques were deposited in his personal account, he is the one liable on this contract.

Answer 2

PAPPAS IS LIABLE ON THIS CONTRACT.
This is because, during the time that the contract was been formed there was no mention of Forever Green landscaping and Irrigation at all. The money paid by the homeowners went to Kevin Pappas personal account. Now, that he is not able to deliver on the contract, he is personally liable for the breach of contract. A third party that was not disclosed during contract formation can not be liable after the contract has been formed.