What to do if a group purchased prepaid bulk rounds of golf from a local golf club but it recently changed ownership and is not being honoring the tickets?

Ownership changed without notice. The expiration date on the tickets about 11/2 years from now. Is this legal?

Asked on October 25, 2013 under Business Law, Virginia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

There is no simple answer--it depends on how ownership changed. If the new owner(s) bought the corporate structure--that is, for example, the limited liability company or corporation--of the golf club, then since it is still the same business entity, merely owned by new people, it would be obligated to honor the prepaid tickets. On the other hand, if the corporate or business structure was not purchased, but rather the assets only (e.g. the course, the clubhouse, etc.), then the new owner would not be obligated to any prepaid tickets sold by the former entity, since the new owner is a diffeent person. It would be like if, for example, you had a contract with a friend that in exchange for his helping you move, you'd let him borrow your car 10 times; if you sold you car to a new person, the new owner of your car would not be obligated to let your friend borrow it. You may be able to sue the former owner of the club, however, for breaching its agreement by taking your money but no longer being able to provide what you purchased (the golf rounds).


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