Will my contract with a business be void if the business is sold?

Get Legal Help Today

 Secured with SHA-256 Encryption

Will my contract with a business be void if the business is sold?

Asked on March 9, 2011 under General Practice, Nevada

Answers:

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

Answered 10 years ago | Contributor

Your contract should still be in effect.  The business can assign the contract to the buyer of the business.  An assignment is a complete transfer of interest.  If something less than the entire interest (contract) is transferred to the new buyer, this would be a delegation of duties.  Under a delegation of duties, the business would retain a partial interest in the contract.

If the contract prohibits assignment, such language may be construed as NOT prohibiting a delegation of duties.  If the contract prohibits delegation of duties, such language may be construed as NOT prohibiting an assignment.

Some contracts cannot be assigned because they may involve unique services or skills, etc.  Unless this is the case with your situation, your contract can be assigned to the buyer of the business and would continue under the same terms absent a modification of terms to which you and the new buyer agree. 


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