Legal Question in Business Law in Massachusetts
company "A" owns company "B". Company "A" sells company "B" assets to company "C". Company "D" has an exclusive agreement with company "B" to make a part, does company "C" inherit the exclusive agreement?
1 Answer from Attorneys
This sounds like a bad law school exam question.
Generally a proper sale of the assets of Company B would include an assignment of product orders and contracts, however the sale agreement should explicity state that and the assumption of the contract should be spelled out as part of a schedule.
Put more simply, was the contract made part of the sale of assets by direct statement or by clearly including the assumption of all existing orders and supply contracts.
Howver, without actually reading the terms of the sale agreement as well as the product agreement it is impossible to provide you with a definitive statement.
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