If a company is dissolved, what happens to its contracts?
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If a company is dissolved, what happens to its contracts?
My company has dissolved but I still have a contract with a company in which I’m required to pay a high monthly fee. I feel the company lied to me about their services and have not responded to calls or emails relating to the dissolution of my company. What would be the potential repercussions if I just stopped paying?
Asked on September 27, 2016 under Business Law, Oregon
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If your company was an LLC or corporation, you are not liable for its debts (as owner or executive) unless and only if you personally guaranteed them. You could stop paying and let them try to get money from a non-existent entity.
If your company was a sole proprietorship operating under a business name (a d/b/a), then legally, you and the company were one and you are liable for its debts and cannot simply stop paying--they can sue you personally.
If you guaranteed the obligation, you are liable for it.
Or, even if your company was an LLC or corporation, if you signed the contract in your own name/personal capacity and not as, say, the "President of Acme, Inc.", then they may be able to hold you personally liable, because in this case, you signed the contract as *you*, not as the company.
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