FL - Business purchase

[charlielha]

I recently bought a web hosting business and everything has being going ok. Today I found that the the previous owner is invoicing clients for past due amounts on their hosting without my knowledge, even threatening with service disruption.

Is it legal for the previous owner to:

1. Invoice in the name of my company, the company I bought from them and which was transferred to us?

2. Cash checks received for the company

 

[CraigFL]

You need to refer to your written purchase agreement. When I bought my business, I bought all the assets and A/R but not the A/P before the date I purchased it. I also slightly changed the name so that it would be easy to differentiate the transactions. I also did a 24hr before closing check of the A/P and A/R accounts and added the detail to the purchase agreement so there would be no question.

 

[charlielha]

The agreement was that any unbilled items prior to the purchase date were ours to bill and keep.

But going a little deeper into the problem, is the Seller allowed to use the name of the company to invoice other clients?