Legal Question in Business Law in California
There is nothing in the contract that talks about assign-ability or assumption. Additionally, this is an insurance wholesale agreement.
Earlier Question:
I have a contract going back to 2006 with company A. In 2013 company A was purchased by company B. The contract with company A does not specify what happens to the contract if they are purchased. Does that mean that there is no legal contract with company B?
4 Answers from Attorneys
You need to reach out to a lawyer in private and have them evaluate the matter. The short answer is "it depends."
There may be successor liability issues here that are relevant and this is not a question for which there is some straight-forward answer.
All the best,
Frank
www.LanternLegal.com
The contracts determine that, and you need to get copies of what applies to you.
IF the new company keeps you on, then no problem. If they don't, you'll get to debate the situation.
If serious about hiring counsel to help in this, and if this is in SoCal courts, feel free to contact me. I�ll be happy to help fight and get the best outcome possible.
It was and remains my opinion that the contract is not snuffed out by an acquisition of the other party, whether or not that acquisition also included a merger of the companies. Contracts aren't cancelled by acquisitions or mergers. See, e.g., Corporations Code section 1107(a).
It still depends on the terms of the agreement with company A, and the terms of the purchase/sale transaction between A and B. There is no way to answer this question without reviewing those agreements.
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