If a company is dissolved, what happens to its contracts?

UPDATED: Sep 30, 2022

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If a company is dissolved, what happens to its contracts?

My company has dissolved but I still have a contract with a company in which I’m required to pay a high monthly fee. I feel the company lied to me about their services and have not responded to calls or emails relating to the dissolution of my company. What would be the potential repercussions if I just stopped paying?

Asked on September 27, 2016 under Business Law, Oregon


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

If your company was an LLC or corporation, you are not liable for its debts (as owner or executive) unless and only if you personally guaranteed them. You could stop paying and let them try to get money from a non-existent entity. 
If your company was a sole proprietorship operating under a business name (a d/b/a), then legally, you and the company were one and you are liable for its debts and cannot simply stop paying--they can sue you personally.
If you guaranteed the obligation, you are liable for it.
Or, even if your company was an LLC or corporation, if you signed the contract in your own name/personal capacity and not as, say, the "President of Acme, Inc.", then they may be able to hold you personally liable, because in this case, you signed the contract as *you*, not as the company.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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