Independent FL agency. Primary owners of agency divorced and one of the previous owners formed a new corporation and is now running the agency. Are the agent contracts that were in place prior to the new corporation valid? or did the new owner need to get new agent contracts to clarify non-compete and vesting?
Does New Owner of Agency Have to Honor Old Contracts?
- Thread starter Evets
- Start date
My guess would be the later since it is a new corporation. It also depends if the contracts were transferable and how the new corporation assumes ownership of the old assets.
- 8,707
I'm not a lawyer, So if I wanted a definative answer I would contact one.
On a side note I have found that when it comes to agents our contracts are only good for use as toilet paper....I had a friend who was with an independent B/D and his contract stated he owned his clients and could take them with him. The B/D was purchased by a new company and my friend decided to move to a third B/D He started transfering his clients and recieved a cease and desist letter stating he was violating the agreement the purchasing B/D had with his old B/D. He spoke with a lawyer and was told he could fight it and might win but would lose in the end being that he would probably pay more in fees....
