QUESTION
if a business is sold are the prior contracts enforceable?
Asked on Aug 28th, 2012 on Contracts - Florida
More details to this question:
I manage a business that is under contract with a c.c processing company. The new owner switched to a new c.c processor. The former processor thinks we must fulfill the contract . Are we able to cancel the old contract because their is a new business owner?
1 ANSWER
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It depends on the language in the contract. If there is a clause excusing performance because of a change in ownership, the contract might be voided. However, the simple fact that the company has new ownership likely does not excuse performance of the contract.
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Answered on Aug 30th, 2012 at 2:38 PM