Do we have to honor gift cards and prepaid packages from the previous business owner?
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Do we have to honor gift cards and prepaid packages from the previous business owner?
Asked on September 10, 2015 under Business Law, Massachusetts
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Was the business a corporation or an LLC? If it was and you bought the LLC or corporation i.e. the business structure, not just the assets, then if it had been the LLC or corporation which had issued the gift cards, the LLC or corporation must continue to honor them, as per their terms, even though a new person you now own the LLC or corporation. But if the business was not an LLC or corporation, or if it was but you only purchased the assets, not the business structure, you would only have to honor the gift cards if you voluntarily agreed to such as if you took them over in the agreement of sale, since in these cases, the cards were issued by and are obligations of by a different person or entity than the business you own.
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