Obligations of New Owner

[cak144]

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

Hopefully this is the right forum in which to post this. I would like to know if a new business owner is legally obligated to honor an agreement made with the prior owner. We are members of a golf club and had prepaid membership fees tor 3 years entitling us to free greens fees. We got a letter from some new owners stating that they now owned the golf club. They further stated that the membership fees that we had already paid could be applied to new higher membership fees and that we would be required to pay the difference. I wrote them a letter stating that I wanted our original agreement with the prior owner to be honored for free greens fees for the amount already paid. If they would not do this, then I wanted a refund of the amount that I had paid in. I have not heard back from them yet. But if they do not agree, do I have any legal recourse?

 

[Mass_Shyster]

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

Hopefully this is the right forum in which to post this. I would like to know if a new business owner is legally obligated to honor an agreement made with the prior owner. We are members of a golf club and had prepaid membership fees tor 3 years entitling us to free greens fees. We got a letter from some new owners stating that they now owned the golf club. They further stated that the membership fees that we had already paid could be applied to new higher membership fees and that we would be required to pay the difference. I wrote them a letter stating that I wanted our original agreement with the prior owner to be honored for free greens fees for the amount already paid. If they would not do this, then I wanted a refund of the amount that I had paid in. I have not heard back from them yet. But if they do not agree, do I have any legal recourse?

Your recourse is against the prior owner. (P). You did not make any agreements with the new owner (N) You paid P for three years of greens fees, which P is no longer honoring. You can sue for breach of contract. Your possible damages are the amount you paid, the amount you paid, pro-rated for the amount of time you used them, or the difference between what you paid and what you need to pay to N to continue the agreement.

It's possible that P and N have another arrangement, but you are not a party to that contract, so have no standing to force N to honor P's contract. P may have standing to make N honor the contract.

If N will not honor the agreement, sue P.