Lease Agreement
John is selling a small automotive business and the buyer (Sam) is going to continue using the current business name. The lease is to the business name but John signed the lease agreement. Sam wants to use the current lease (month to month) because he doesn’t want to sign for a year and he thinks the landlord will raise the rent.
Besides the ethical implications, what are the legal implications for John?
Re: Lease Agreement
Need to read the lease agreement terms to advise. The agreement controls. If with an individual (John) and he sells the business he may be in breach. Esp. if there is a prohibition of assignment.
David Anderson
Mahoney Anderson LLC
P.O. Box 44504
Eden Prairie, MN 55344
Re: Lease Agreement
There are many legal consequences. John remove and distance himself from this situation and the new owner immediately. This new owner and/or new company has the legal and ethical responsbility to change and transfer the lease and property to his/her name or the company name. It is not John’s problem or responsibility and he must remove himself immediately. Otherwise, he is setting himself up for a lot of legal liability problems or issues.
Marsha Dixon
Adroit Legal Services, Inc.
1901 Northeast. 54th
Oklahoma City, OK 73111
Re: Lease Agreement
When the property was sold and transferred to a new owner, so was ownership and liabliity. No other agreements should exist unless it was a partnership, merge or franchise that bounded current and previous owners under an operating agreement,a subsidiary or auxiliary arrangement protected by law. Additionally, they must consider tradename or intellectual property issues….to name a few. Eitherway…it is recommended that the previous owner all ties to the new owner. This includes removing himself and his company from the lease.
Marsha Dixon
Adroit Legal Services, Inc.
1901 Northeast. 54th
Oklahoma City, OK 73111