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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Two companies signed an agreement. One was to supply goods

Resolved Question:

Two companies signed an agreement. One was to supply goods on licence to the other party. A contract was signed between the previous owners (1997) of the business that I now own (my farther owned it between 2001-2007) neither my farther or I have signed a new agreenment. Can I be held to the old agreement.
Regards
Martin Evans
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts : Hello Martin my name is ***** ***** I will help you with this.
Alex Watts : For now please let me know did the previous owner sign personally or as a limited company please?
Customer:

I have many times looked at this agreement, but I have gone to the file and it is not there. I will have to see where I have put it and look how it was signed. I can tell you that my farther only bought the assets off them. I will look for the document and will advise. Kind regards

Customer:

The business was a partnership and not Limited is this the information you require.

Alex Watts :

Ok - and now is he a sole trader, ie was he involved in the business before?

Customer:

No. When my farther bought the assets he set the business up with a new bank account and as a parnership with my mother and when I bought it I have set it up as a partnership with my wife. I have just asked my farther who has told me that the agreement which was written by the other party did put the company as limited, however, he has looked at a copy of thier old accounts which states it was a partnership

Alex Watts :

Ok - so it went from a partnership and he brought the assets, is that right?

Customer:

yes

Alex Watts :

OK- then you are not liable.

Alex Watts :

This is because the old agreement ended when the partnership as dissolved.

Alex Watts :

As you are not a party to the agreement you can not be held liable for it

Alex Watts :

If it had been signed by a Limited company then that would be different. If you had purchased the Limited company then in this case the Company would be the party and you would have purchased it

Alex Watts :

But in this case that has not happened. As an individual you can't be held liable for something you did not sign

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

he is now the new owner of the other business and he did say that as I do what the contract asks then by definition I agree to it?

Alex Watts :

No, you dont need to. Its a commercial decision for you.

Alex Watts :

But you are not bound

Alex Watts :

Does that help?

Customer:

Yes Thank you

Alex Watts :

Can I help with anything else today?

Ash and other Law Specialists are ready to help you