if there was a non compete agreement between company a and company b and company be was bought out by company c does the old agrrement stay in force
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if there was a non compete agreement between company a and company b and company be was bought out by company c does the old agrrement stay in force
wanting to spend more time with family told boss about home situation and would like to pursue another position old agreement says that if I go to company a company a would have to pay 1/2 of my salary the company is no longer in business and there is no updated agreement. can they inforce the old one
Asked on March 8, 2016 under Employment Labor Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Company C can enforce the non-compete agreement if in buying B, they bought the LLC or corporation (assuming B had been an LLC or corporation) and not just B's assets; or if they bought B's assets, if in the purchase, they assumed (took over) the non-compete (one person may take over the rights to another person's contracts in most cases), which is fairly likely. Therefore, there is a good chance the agreement can be enforced against you; it would only not be enforceable if C only bought B's assets and did not assume the non-compete agreement
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