Is a contract between a modeling agency that is not legally licensed and a modelvalid?

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Is a contract between a modeling agency that is not legally licensed and a modelvalid?

A scam modeling agency operator who is not legally licensed in the state, is trying to force girls who quit before their contracted one yr term was up, to pay a $500 breach of contract fee. The fee is listed in the contract they signed. After he sexually assaulted and harassed several models, and they all found out that the company is not licensed in the state, several young ladies resigned. But he has hired a collection agency to harass them into paying the fee. I’d like to know if the contract is enforceable in a court of law, even tho the agency is not licensed as it represents.

Asked on September 20, 2010 under Employment Labor Law, Pennsylvania

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The contract is not enforceable because the agency is violating state law by not being licensed.  Violation of state law would be a defense to enforcement of the contract which the models could assert when sued by the  modeling agency and the collection agency for the $500 fee.

The models could also sue the agency for breach of contract which occurred when the operator sexually assaulted and harassed them.  The models, who were sexually assaulted should also contact the district attorney's office to have criminal charges filed against the operator of the modeling agency.


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