Business Sold, Are Consumer Contracts Lost?

[paterup2]

What is the name of your state (only U.S. law)? Illinois

I purchased services from one business (a spa/clinic) which was unexpectedly sold to another owner. The new business refuses to hold up the agreement I made with the old business despite having paid in full. According to the former owner, the price of the business was reduced to account for customer's like me who still needed services and paid in full. According to the new business, they have no obligation to uphold former contracts because they did not "buy the business" but only "bought the equipment and client files" to run a similar business. Have I lost my money and my right to continue services? Do either owners have any legal obligation towards me?

 

[JETX]

Have I lost my money and my right to continue services? Do either owners have any legal obligation towards me?

First, you need to READ the contract to see if there are any references to sale of business or requirements that YOU must meet or comply with to pursue any claims. If there are, comply. If not, step 2.

Second, do you have their DENIAL (of service) in writing?? If not, you need to get it.
Send them a very nice letter explaining that they are OBLIGATED to owner your contract and that you intend to hold them to that obligation. Ask that if they feel they are not obligated, to provide proof of their 'conditional purchase' within 10 working days from receipt. And that if they don't, you will "consider all legal options to enforce their breach".

And finally, if they don't respond to you in writing (with a copy of their purchase agreement showing they are NOT purchasing the obligations/contracts) within the prescribed time, your next step should be to your local small claims court.

 

[paterup2]

Thank you so much for the information!

Unfortunately, I don't have an official contract. All of this was done verbally, and I was told the only paperwork needed was for the GE Care Credit (loan) I was taking out. They took down my information, started a patient file, and submitted my loan documents. I was told that was all that would be needed. I contacted the owner of the former business and she said that her business had been sold and the new owner's sales contract states that they must continue former patients' treatments.

I will try to get a written statement from the new owner saying they will not continue my services.

Again, thank you for your advice.

 

[Zigner]

Thank you so much for the information!

Unfortunately, I don't have an official contract. All of this was done verbally, and I was told the only paperwork needed was for the GE Care Credit (loan) I was taking out. They took down my information, started a patient file, and submitted my loan documents. I was told that was all that would be needed. I contacted the owner of the former business and she said that her business had been sold and the new owner's sales contract states that they must continue former patients' treatments.

I will try to get a written statement from the new owner saying they will not continue my services.

Again, thank you for your advice.

If you don't have a contract, how do you really expect the new place to even KNOW what your "agreement" was? You really have no-where to go with this...