How to Handle Company Contracts during the Sale of the Business

Note: The DearEsq free 'ask a lawyer' site is offered as a free informational service to the public and is not intended as legal advice. Laws vary from state-to-state, and in addition every situation is unique, and relevant facts may not be known. The answer to the question posed below may not apply to in your state or to your situation. For legal advice in your state and your situation you should consult with an attorney in your state who is familiar with the rules and laws in your state.

“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.”

Question: 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.