Is the new company legally obligated to uphold a contract? 3 Answers as of August 02, 2011

I have a contract with a company that was just acquired, is the contract still valid between my company and the acquiring one? I hold events as a business. We sell sponsorships. We sold a 5 event sponsorship to one company. That company got acquired after one event. Is the new company legally obligated to uphold the contract?

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Bernard Huff, Attorney/Mediator
Bernard Huff, Attorney/Mediator | Bernard Huff
Consult with a local contracts attorney.
Answer Applies to: Indiana
Replied: 8/2/2011
Law Office of Eli M. Kantor
Law Office of Eli M. Kantor | Eli Kantor
It depends on whether The new company assumed the assets and liabilities of the old company or whether it was just an asset purchase agreement. If the new company only purchased the assets and did not assume the liabilities then you cannot enforce your contract.
Answer Applies to: California
Replied: 8/2/2011
Law Offices of Steven A. Fink
Law Offices of Steven A. Fink | Steven Alan Fink
It depends on the structure of the acquisition. If it was a stock purchase of the entire company the new company is required to honor the contract. If it was an asset purchase only, it depends on if your contract was one of the assets acquired. You can ask them.
Answer Applies to: California
Replied: 8/2/2011
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