How to Handle Company Contracts during the Sale of the Business
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I have a contract with my previous company that states when the company sells, someday, I get 5% of the sale price. They are now selling off a piece of the company (not a separate company, just a d.b.a. division) for $100,000. Am I entitled to $5,000 or can they just keep selling off pieces without giving me anything? |
“I have a contract with my previous company that states when the company sells, someday, I get 5% of the sale price. They are now selling off a piece of the company (not a separate company, just a d.b.a. division) for $100,000. Am I entitled to $5,000 or can they just keep selling off pieces without giving me anything? I would hate for them to “loophole” their way out of paying me.”
Without seeing the actual contract, it is impossible to answer this question. Your best bet is to have a lawyer in your state review the contract; even if you have to pay for the consultation, given the amount you stand to gain (or lose), it’s a wise investment.
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For more on this subject check out these categories: Business Law, Contract Law
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State laws vary, and the above is intended as general advice, and not direct legal advice regarding any one particular situation in any one state. For direct personal legal advice related to your own situation you should consult an attorney familiar with the laws of your state and with your situation.
