For a business purchased and transferred on aug 1, who is responsible for utility services through June and July when the bill due dates are in august?

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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Unless the parties agreed otherwise by contract, the person who owned the business during those months the seller would be reponsible for the bills. However, the utility company will most likely seek payment from the current owner, and if he/she does not pay, may face utility shut-off. Therefore, the buyer may have to pay the bills then seek reimbursement from the seller, including by suing, if necessary and if the bills are large enough to justify a lawsuit.

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