Legal Question in Business Law in New York

The effects of new company ownership on a pending contract

If a two comapnies are in a contractual agreement together and one of the companies is purchased by a third party and the third party wants to continue to meet all the provisions of the pending agreement does a new contract have to be created or can the old contract (signed by the original two parties) remain in place?


Asked on 2/07/02, 2:42 pm

1 Answer from Attorneys
Kenneth J. Ashman Ashman Law Offices, LLC

Re: The effects of new company ownership on a pending contract

Generally speaking, the obligations and rights under a contract can be "assigned" to another party. However, it is not uncommon for a contract to provide that no such assignment is valid unless all parties to the original contract agree in writing.

Check your contract to see what it says. Even if it provides that no assignment is permitted, you may be able to get the other side to agree to the assignment of the contract to the purchaser of the company.

-- Kenneth J. Ashman; Ashman Law Offices, LLC; [email protected]; www.lawyers.com/alo

Unless the contract provides that it is not assignable,

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Answered on 2/07/02, 3:58 pm


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