Will my contract with a business be void if the business is sold?
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Will my contract with a business be void if the business is sold?
Asked on March 9, 2011 under General Practice, Nevada
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Your contract should still be in effect. The business can assign the contract to the buyer of the business. An assignment is a complete transfer of interest. If something less than the entire interest (contract) is transferred to the new buyer, this would be a delegation of duties. Under a delegation of duties, the business would retain a partial interest in the contract.
If the contract prohibits assignment, such language may be construed as NOT prohibiting a delegation of duties. If the contract prohibits delegation of duties, such language may be construed as NOT prohibiting an assignment.
Some contracts cannot be assigned because they may involve unique services or skills, etc. Unless this is the case with your situation, your contract can be assigned to the buyer of the business and would continue under the same terms absent a modification of terms to which you and the new buyer agree.
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