If you are under contract with a cellular carrier, and that carrier changes its’ name, are you still obligated under the contract signed previously?

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If you are under contract with a cellular carrier, and that carrier changes its’ name, are you still obligated under the contract signed previously?

I have been a customer for years. Just a little over a week before the switch, I signed a new contract, not knowing the company was going to change. Since the change, service is horrible. Dropped calls, missed calls, and no data are just a few complaints. Is there a legal was to get out of my contracts since they are no longer operating under the original name? I didn’t sign a contract with the successor.

Asked on October 20, 2011 under General Practice, Mississippi

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Your contract is still valid even though the name of the company was changed or the contract was assigned to a new company.  Assignment is a complete transfer of interest in this case from the first company to the second company.  An assignment is valid unless the contract prohibits assignment.  Even if the contract prohibits assignment, the assignment may still be deemed valid because it may be construed as a delegation of duties instead of an assignment.

Although your contract is valid and remains in effect, you can sue the new company for breach of contract due to the poor service you have cited.  When there is a material breach of contract (one that goes to the heart of the contract; basis of the bargain), you can stop your performance of the contract and sue immediately for breach.  In this case, it would be advisable to try to have the company correct the poor service problems before filing a lawsuit for breach of contract. 


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