Legal Question in Business Law in California

That would depend, in part, on what the "Purchase of Assets" agreement stated...and you probably have the original signator also liable. I would suggest that you forward a copy of both contracts to an attorney of your choice....questions?

By Grace...

Shawn Jackson ESQ. (707) 584-4529

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As a Franchise Attorney I think the answer depends on three factors. First, how your contact addresses sale of entity situations. Second, whether the sale was of the entire entity (typically where the buyer acquires the stock or LLC shares), in which case the buyer usually gets the assets as well as the liabilities (which would include your contact). Third, whether the sale was the more typical "sale of assets" where the buyer only purchases listed assets and usually assumes no liabilities. In any event, you still have your contract with the original owner and can possibly seek recourse. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation