If I have someone getting paid recurring commission on business he brings to me and I sell my company, how can I ensure that he will still receive his commission from the new owner?
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If I have someone getting paid recurring commission on business he brings to me and I sell my company, how can I ensure that he will still receive his commission from the new owner?
Or is bought out by the new company?
Asked on October 3, 2013 under Business Law, Texas
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
You can try and negotiate the issue in the contract of sale, meaning that the attorney handling the sale for you can put in to the contract that the buyer acknowledges where the business is coming from the assumes the "contract" that you have with the rain maker. It really depends on your state law. But if there is a pre existing contract between you and the rain maker then it should be made clear during negotiations and sale. Generally, if they are purchasing the business then they purchase the assets ann obligations. Good luck.
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