Legal Question in Business Law in Missouri

Business changing hands

If a business is sold lock, stock and barrel, and the original owner had not gone out of business or filed for bankrupcy, is the new owner liable for the original business' debts? Specifically, if there are outstanding unused gift cards consumers purchased from the original owner, does the new owner have to honor them? Thanks.


Asked on 3/15/08, 6:42 pm

1 Answer from Attorneys
Anthony DeWitt Bartimus, Frickleton Robertson & Gorny, PC

Re: Business changing hands

This would depend on what the contract for sale said. If the contract for sale is silent on this issue, then in most cases the liabiity would transfer to the new owner. Any liabiilties of that nature should have been disclosd in the accounting and transferral of assets.

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Answered on 3/17/08, 10:05 am


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