If the previous owner signed a contract with an advertising company that lasts 2 years, does the new owner bare that responsibility when he/she bought it a year ago? Is the new owner obligated to pay the 2nd year advertising fee?
2007-06-06 23:54:52 · 6 answers · asked by Andy 1 in Politics & Government ➔ Law & Ethics
There is a doctrine of "successor's liability," however, the answer to your question lies in the wording of the contract. If you bought a corporation, the answer is probably yes. If so, this obligation should have been disclosed to you before the sale and you can bring suit for fraud and negligent misrepresentation; punitive damages will be available for the fraud count.
2007-06-07 00:02:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The answer is dependant on what was disclosed during negotiations to buy the company and the precise wording of the contract.
If you are genuinely concerned, contact the Lawyer you used when buying the business, or engage the services of one immediately.
2007-06-07 02:06:12 · answer #2 · answered by rkz234 2 · 0⤊ 0⤋
Yes, unless there is a clause in the ownership agreement which exempts the new owner from all, or some of the previous contracts.
2007-06-07 00:02:32 · answer #3 · answered by Ro40rd 3 · 0⤊ 1⤋
It depends on the wording int the contract between the buyer and seller. If you bought all assets and liabilites, you have to honor the pre-existing contract.
2007-06-06 23:58:18 · answer #4 · answered by regerugged 7 · 0⤊ 0⤋
that should have been answered before sighing on the dotted line.....
2007-06-07 03:25:09 · answer #5 · answered by DennistheMenace 7 · 0⤊ 0⤋
Yes, when you buy a company you buy it all.
2007-06-06 23:58:58 · answer #6 · answered by Anonymous · 0⤊ 1⤋