If I have a service contract with a company, what happens to the contract if the company is sold?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I have a service contract with a company, what happens to the contract if the company is sold?

I signed a contract 37 years ago for elevator maintenance with Company A. It was for a 5 year term, automatically renewable every 5 years. The Company was sold to Company B 2 years ago. I have now decided that I want to contract a different company but Company B claims that I have a binding contract for the next 3 years. Is this true even though I never signed with Company B?

Asked on September 9, 2015 under Business Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

It is likely true
1 If A had been an LLC or corporation and the LLC or corporation itself had been sold, then B owns the entity with whom you contracted and can enforce the contract.
2 Even if the above did not happen, a contract like the one you describe can be "assigned," or sold or transferred, to another company to fulfill the contract unless the contract itself had stated that there was no assignment allowed It is likely that B took over the contract from A.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption