Reception Hall was sold but I have a contract with old owner?

Question

I have an event in May for an event, but the hall has been sold.  The new owner is charging me $700.00 more.  I have already given a deposit and I do have a contract signed by both parties, the old owner and myself.  I was aware that the place was up for sale, but the contract states that "Every effort will be made to set the closing date to be after any agreement for use as scheduled".  Should the new owner honor this contract or should the old owner pay for the difference?  Please help me with this mix up.  Thanks for any help.

Teekno · Accepted Answer

When the new owner purchased the business, he purchased all of the contractual obligations of that business. Your contract should still be valid.

I would tell the owner that you expect him to live up to the terms of the contract, or let the lawyers handle it. You might also tell him that you're willing to agree not to disclose how much you rented the hall for.

Anonymous · Answer

Sales contract between the new and old owner should cover that.  Unfortunately for you all contracts are void once the property is sold.  While the new owner may have no legal responsibility to honor bookings, it would be both bad publicity and bad business to keep the schedule.

And also unfortunately, the agreement you signed with the previous owner made no mention of honoring the price schedule.

The old owner should return your deposit, unless he passed those to the new owner.

Without seeing the sales contract, there is little one can do but speculate. And you are not in a good spot.

Anonymous · Answer

"Every effort" is an indefinate word. You are screwed. Pay the extra $700 or find a new hall.

Anonymous · Answer

The term, "every effort" might be a problem.

Trending News

Reception Hall was sold but I have a contract with old owner?

4 Answers