Is contract fir service rendered valid – if one company is sold to new owner, has new location, name?

Question by bhenson1234: Is contract fir service rendered valid – if one company is sold to new owner, has new location, name?
My wife and I own an events company and our first event is a \”themed music\” cruise. We got into an agreement (contract) with a local travel agency about 6 months ago (June timefreame) to take the bookings, collect money, etc..for folks that want to book passage on the cruise ship because we are not travel agents. We are just the promoters of the event. The travel agency has been sold in the last few weeks (in California). We HAD a contract with the OLD agency under the old travel agency name and owner and location. Now, the agency has changed owners and location and name. We do not want to stay with the new Travel company. The new company has not asked us to sign a new agreement (contract) with them under the new name, ownership, location. Are we legally bound to stay with them?

Best answer:

Answer by rehman vohra
It is necessary to study the terms of contract. Does it mention anything about the effect on the contract in the event of change in ownership?

The old owners should have informed you of the possible change of ownership and asked for your consent to continue the contract or rescind it.

Again, what is the set up of the travel agency business? If it is a corporation then you are legally obliged to continue with the contract since the contract was made with the corporation and not the owners. If you wish to withdraw you may be liable for breach of contract.

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