For a business purchased and transferred on August 1st, who is responsible for utility services through June and July when the bill due dates are in August?
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For a business purchased and transferred on August 1st, who is responsible for utility services through June and July when the bill due dates are in August?
Is it the seller that received the services during those months or the buyer who owns the business when the bills are due?
Asked on September 5, 2015 under Business Law, Washington
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Unless the parties agreed otherwise, such as in the sale agreement which is their right parties to a contract can agree to any division of costs they choose, the one who owned the businss in June and July the seller should pay these bills.
However, the utility will most likely seek the money from the current owner if the current owner the buyer does not pay, he/she risks a utility shut off. So the buyer may have to pay the bills, then seek reimbursuement from the seller, including, if necessary, by suing for the money if the bill is large enough to make that worthwhile.
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