Contractual obligation

[marcusman]

What is the name of your state? Massachusetts

I operate an outdoor, seasonal tennis business (April through October) which has grown considerably. I am considering selling it after this year. I have a contract with my head tennis pro which states:

"(My Name) D.B.A. The Tennis Center agrees to abide by the following contract beginning in the spring of 2002:

To employ (name of pro) at the Tennis Center from spring through fall, beginning in 2002 through the year 2005 with the title of Head Tennis Professional."

If I sell the business, how does that affect the contract?

 

[BB_Wolfe]

I would assume that the new owner would employ this person, or at least pay out his contract.

Either that or you pay out his contract.

 

[marcusman]

If I sell the business without paying out the employee's contract, does the new owner HAVE to honor the contract, or can he/she bring in their own employees and let my current one go?

Also, the name of the business will change once it's sold. Does this have an impact on the status of the contract?

Thanks again,

-M

 

[I AM ALWAYS LIABLE]

My response:

Your unilateral decision to sell the business has NOTHING to do with the viability, or enforceability, of the bilateral contract between you and the Tennis Pro.

Unless the new owner agrees to accept the Tennis Pro's contract along with the sale and purchase of the business, then simply, you'll be the one on the hook to the Tennis Pro.

A sale of your business does NOT vitiate your liability - - unless there was a term, condition, or clause, in the Tennis Pro's contract covering that eventuality.

Abandoning the contract would be virtually the same thing as a tenant skipping out on a landlord.

If I were buying your business, I wouldn't take your business unless the contract was completed, or I had proof that you bought out the Tennis Pro's contract.

IAAL

 

[marcusman]

Thanks for the help, everyone!