Legal Question in Business Law in Texas

Selling my business

I recently sold my part of a business(a coporation which started as a partnership) to my partner. I no longer have any stock or ownership in the company. we notified all of our vendors of the sale,but now some vendors are contacting me because he is late on payments because we signed agreements when we were a partnership to personally guarantee purchases at that time. we formed the partnership in 1997 , when we became a coporation in 1999 we notified all of our vendors of our change to the corporation. what can i do?


Asked on 5/22/01, 7:53 am

1 Answer from Attorneys

Re: Selling my business

That all depends on what you signed with the vendors, and what you disclosed to them. Typically, a promoter of a corporation is liable for contracts until the contracts are novated by the parties after the corporation was formed. Second, a person may be liable for a corporate debt if that person guaranteed the debt or if the corporate formalities are not kept up. Therefore, I would have to thoroughly review your paperwork before I could tell you what you rights are and what you can do. Please feel free to contact me if you would like to discuss this further.

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Answered on 6/22/01, 12:28 pm


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