Legal Discussion Concerning Zach’s Lawsuit Against His Creditors

Zach is enters the law office and greets the lawyer he’s arranged to meet. They exchange a few pleasantries and then sit down to discuss the purpose of the visit.

Zach: Hello, I’d like to discuss a lawsuit but before I do, I’d like to ask you a few questions about contract law. Do you mind?

Lawyer: By all means. 

Zach: Do you mind explaining in simple terms what the meaning of “consideration” is in the context of a business contract?

Lawyer: Certainly. In essence, “consideration” is what each party must offer in order for the other party to consider entering into the contract. Consideration is typically an asset of some sort that is defined somewhere within the contract. 

Zach: Thank you. And if a contract is absent of this consideration? What happens?

Lawyer: Well in that case, the contract is voidable, since you cannot have a binding agreement to exchange when there is nothing being exchanged by one or more parties. 

Zach: Could you give me an example of a contract that is lacking in consideration?

Lawyer: Sure. Let’s say your dad told you he was going to give you a car for free last summer but he never did. You couldn’t sue him for failing to deliver the car because you didn’t put up any consideration. Even if he signed a piece of paper outlining his commitment to delivering the car, that piece of paper would not be enforceable as a contract. 

Zach: What if the son agreed to finish college last summer and that was put into the contract. Would that constitute consideration? 

Lawyer: Yes it would since the son’s purposeful time and energy is a valid form of consideration. 

Zach: Are there any other examples you can think of?

Lawyer: Well let’s see. Going back to the family example, let’s say the dad offered to give his son a vehicle that wasn’t his to give. Let’s say the car was technically in his mother’s name only. That would also constitute a lack of consideration since the son would be considering something without the proper person offering it, namely the mother. 

Zach: So if the son were to complete college and then request the vehicle, what would happen. 

Lawyer: Well, assuming the mom doesn’t agree to the exchange, the son could sue his father for damages, since the father entered into a contract under false pretenses. 

Zach: Are there any other restrictions as to what can’t be used as a form of consideration.

Lawyer: In general, whatever is being put up for consideration needs to be a real asset, owned by the party offering it, that can be defined within the body of the contract. So you couldn’t, for instance, offer someone else’s money or someone else’s time.

Zach: This is very helpful. But don’t people offer other peoples time all the time? For instance, I used to work on an offshore supply vessel. Those contracts guarantee a number of men to be on the boats providing services.  

Lawyer: In that case, what is being offered is a hypothetical person secured by legal means, such as their own separate contract. Once the person being contracted agrees to exchange their time and resources with the company, the company can then legally offer that person’s time to their customer. 

Zach: I see. In that case, there is a chain of contracts running all the way back to the person who owns their own time. Only when the person has legally contracted their time with the company, can the company legally offer their employee’s time to their customers. 

Lawyer: Precisely. 

Zach: I have a hypothetical question for you in this same vein. It might sound strange so please bear with me. Can something like an abstraction be used as a form of consideration? I’m thinking of abstract ideas like numbers or measurements without any substance such as gallons, ounces, or feet?

Lawyer: You know, I’ve never heard of such a thing. No, I don’t suppose numbers or measurements could be used since there can be no proof of them being delivered. How would you know if 2 gallons were delivered and not 1.97 or 2.04? 

Zach: I could give you a piece of paper saying two gallons. Would that be ok?

Lawyer: Well that’s the same as a company delivering a receipt saying 20 gallons of gas were delivered to you at the fuel pump. The receipt alone is not proof of delivery which is why you see those stickers on the pump validating that the amount of gas flowing through the pump is equal to the measurement displayed on the screen. 

Zach: Thank you for that explanation. If the gas station were to just give me a receipt without the gas, what would I be able to do?

Lawyer: You could sue them for fraud because they misrepresented their assets. The same would be true for the company who sold someone else’s time or the dad who sold the moms car.

Zach: Ok I’m ready to talk about my case now. You have proven two things that are very important to the essence of my lawsuit. First you have said that it is invalid for a company to offer someone else’s time to a customer before properly securing it and secondly you have stated that a number or measurement alone is also not a sufficient form of consideration. If either are offered in exchange for a tangible good or service, the contract enforcing the exchange is voidable and the party which put up the valid form of consideration can sue the party that put up the invalid for fraud. 

I have taken on roughly $1.25M in loan contracts between my mortgage company and several other financial services. I seek to prove that the mortgage company sold my time and energy back to me in exchange for my own time and energy plus interest. Since the bank credit is created at the time of contract, what is the money being created but a receipt for my own time and energy? Can the mortgage company legally offer me my own time and energy for my own time and energy plus interest plus a down payment plus the title to the property? Surely not since the bank does not own my time and energy and therefore had no right to sell it back to me. With me so far?

Lawyer: Yes

Zach: Good! So I want to sue my mortgage company and all my other creditors for fraud. Here is a summary of my creditors:

1. Alliant Mortgage Company - $800,000 outstanding loan securing my IOU, $100,000 in down payment, and 2 years of regular monthly payments of $4300. Seeking nullification of contract and return of all payments made to them as damages estimated at $203,200

2. American Express - $60,000 credit card outstanding balance in exchange for IOUs and payments. Seeking nullification of contract and return of all payments made to AMEX as damages estimated at $200,000

3. JP Morgan Chase - $70,000 credit card outstanding balance in exchange for IOUs and payments. Seeking nullification of contract and return of all payments made to Chase as damages estimated at $300,000

4. JP Morgan Chase - $70,000 auto loan securing new vehicle. Seeking nullification of contract.

5. USAA - $90,000 auto loan securing new vehicle in exchange for down payment of $10,000 and 7 months of payments of $1200. Seeking nullification of contract and return of all payments made to USAa as damages estimated at $18,400.

6. Porche Financial Group - $85,000 auto loan securing new vehicle in exchange for down payment of $15,000 and 0 months of payments. Seeking nullification of contract and return of all payments made to PFG as damages estimated at $15,000

7. Harley Davidson Financial Group - $15,000 auto loan securing new vehicle in exchange for down payment of $15,000 and 0 of payments. Seeking nullification of contract and return of all payments made to HFG as damages estimated at $15,000.

Total Damages Estimate: $751,400

I do not simply want the receipts of dollars being delivered to me in the form of Federal Reserve Notes. I would like this to be delivered in the silver equivalent as defined by the US constitution, which would constitute 751,400 ounces of pure silver American Eagles or their silver equivalents . 

In addition, I would like to consider using my standing against these institutions which are members of the Federal Reserve Banking System, to suit the federal reserve for fraud and for conspiracy to commit fraud. I believe there is a case to be made which will force this central bank to forfeit all their assets, including the gold and silver reserves they have stolen by means of fraudulent credit creation. 

Thats my case. What do you think?

Lawyer: Let me make some phone calls. I’ll call you in a week. Before I go, how do you intend to pay?

Zach: That’s a good question. It would be most hypocritical of me to offer you dollars since we both would be advocating that dollars themselves could not be used as a means of successfully securing a contract. Granted I understand that you may want them nevertheless since groceries and such are secured with dollars, however illogical or illegal that practice is today. Therefore, I propose this arrangement. I will pay you in gold and silver on a performance based scale. 

To secure the contract, I will provide you with one $50 American eagle gold coin. An additional $50 American eagle gold coin will be provided for each lawsuit successfully filed against my creditors (maximum of 7). You will also receive 1% of the damages awarded. This would be 8 ounces of pure gold and 7,514 ounces of silver. While this is a poor measurement, in today’s dollars, this would be the equivalent of an upfront payment of roughly $2000 and milestone payments of an additional $14,000. Upside for damages is somewhere near $150,000. WOuld you be opposed to this arrangement? 

Lawyer: No. That is agreeable to me. If I take this case, I’ll write this into our contract. 

A week later Zach and his lawyer filed his lawsuit against his creditors in the Colorado court system. The events of the following 21 days were nothing short of extraordinary, with Zach winning his case and ending a centuries long practice of fraudulent credit creation. All the gold and reserves acquired by banks and central banks were put into a trust and was distributed back to the people to whom had been defrauded. 

The testimony Zach gave at this trial is recorded here:

https://www.tiktok.com/t/ZPR3CgFvq/