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I am a self employed contractor with 3 years left on my contract with a business that has been sold. Does the new owner have to honor my contract?

1 Answers. Asked on Mar 17th, 2016 on Business Law - Florida
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Answered on Mar 17th, 2016 at 7:33 AM

Depends.  When you say the business was sold, do you mean the entity owning the business (e.g. the stock in a corporation) or the assets of the business?  If the entity was sold, the entity is still obligated under the contract.  Thus, if you had an employment agreement with x corporation owned by John Smith, and Smith sold the stock in x corporation to Jane Doe, x corporation is still under contract with you, even though it is now owned by another person.  If instead, however, x corporation sold its assets to Jane Doe, who did not expressly assume any liabilities, x corporation remains obligated under the contract, but Jane Doe has no obligation.

I just want to make clear that, while the contract is still in force, it may very well provide that your employment is terminable at will, or terminable upon sale of the business, or some similar provision.  Thus, the contract may not create any obligation to you.

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Business Law
Beginning on the day a new business is launched, it will encounter a host of legal issues. From selecting the optimal business structure to negotiating contracts, from ensuring that the company's name doesn't infringe on another business's intellectual property to hiring new employers--almost everything that small business owners do touches on some aspect of business law. As a company owner or manager, your focus should be on successfully running and building a business. A law firm that focuses on business law will have attorneys who have a broad cross-section of experience on the myriad legal issues that affect all businesses, large and small.
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