Legal Question in Business Law in Tennessee

Can a garbage company hold new owners to a long term contract signed by previous

New owners honored a three year contract for garbage service. It had another three year rollover clause, which the new owners did not know about. The former owner, now deceased, took the contract with him when leaving. After the first 3 year period was ended, we asked the service to give a new quote. They informed us we were bound by the previous roolover clause and the time to have asked for that was a month before that contract ended. It was not known when the original dated contract was signed. Can they make the new owners adhere to this? They never signed, or even saw the original contract and have never received a copy of it.


Asked on 8/28/04, 12:04 pm

1 Answer from Attorneys
Robin Gordon Gordon Law Group, PLC

Re: Can a garbage company hold new owners to a long term contract signed by prev

it depends on the nature of the purchase of the exisitng business; if you purchased all the assets and liabilities then you are responsible and this should have been discovered in your due diligence; if not, you may have a way out; without reviewing what you bought alawyer can not give you an absolute opinion

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Answered on 8/30/04, 11:06 am


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