Consumer Law, Warranties Can I get sued?

[moediaz]

Greetings, this is my first post.

i've entered into a contract with an investor. The deal was that the investor would invest $7,000 and one a certain day he would get back $10,000.
The person investing was listed as an investor on the contract, stating he/she will invest. We got the money and used it for our event we produced.
We didn't make a profit, and we lost the funds. Now the investor is planning to sue us because he didn't get his $10,000. Can we get sued?

 

[dee_dub]

You certainly could be sued. Anybody can sue for anything. Whether he will succeed is anybody's guess.

The deal was that the investor would invest $7,000 and one a certain day he would get back $10,000.

You call him an "investor", buy I'm not sure why you think that term is significant. The arrangement sounds essentially like a loan with a specified rate of return.

 

[moediaz]

I see, so we are obligated to pay him the money.

 

[dee_dub]

Only a judge can determine that for sure. If you think you are not obligated, don't pay him. He'll sue (probably a small claims matter) and the judge will decide. You could argue that he knew he was getting into a venture that involved some risk, or something like that. Based on the limited information we have so far, it's tough to say how it would pan out.