Contract still valid under new ownership?

[NickSr_Mom]

What is the name of your state? Illinois

I signed a contract as a music teacher for a local music store. The contract states:

"It is further agreed that if I do not wish to continue using the facilities of [name of store] for teaching, I will give the studio coordinator a 30 day written notice. All students taught at [name of store] are not to be recruited by former teachers of [name of store] for a period of six months."

Now, however, that studio is being sold to another company. The new company contacted me today telling me that they will be raising my studio-use rates once they gain ownership. (In the past, I had to pay 20% per half hour lesson. The new rates increase it to 30%.)

My question: Since I signed the contract under the first store's name, is it still legally binding when the piano studio comes under the new ownership?

 

[hexeliebe]

It depends on whether or not there is a tranferability clause in the contract. All this means is that the contract can be assigned to a third-party.

Without this clause, the contract is between you and the business that signed the contract, not the new owners.

 

[badtenant]

It would be the same as a rental lease.....

If you have a contract for say 100 lessons at 20% each, the contract must be honored by the new owner.

If it states I agree to pay 20% for the use of the studio, then the new owner can raise the raise as they wish since you would have the same deal as a month to month tenant would.

Its also possible in the contract it states its not transferable to any new owner, but usually it is transferable.

But here is a thought:

Since they are changing the terms of the new contract, by raising the rates, you will not sign the new contract, and since they will NOT continue the old contract under the old rules, then you wont be bound by the old contract regarding, the non-solictation of students for the 6 months,

So bascically just KEEP QUIET, and find another place to use, and solict the students off the premisis.