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 would hate for them to “loophole” their way out of paying me.”

[NOTE: Articles and answers on DearEsq., while written and published by lawyers, do not constitute legal advice, and no attorney-client relationship is formed by your reading of this information. You should always consult with an attorney for any legal situations.]

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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Author: House Attorney

A house attorney has answered this question.