Change of contract novation from a supplier
Discussion
I've had formal notice of contract novation from our SEO agency. I've never come across this before, but appears that ownership has changed and the new entity is taking over all legal agreements. Is this the case? Are there any other considerations before I sign the new agreement?
Thanks
Thanks
LooneyTunes said:
The main consideration is that you probably aren’t obliged to enter into the new agreement.
(As simple change of corporate ownership would not normally require a basic agreement to be changed so, as has been said already, check it matches the current agreement!)
How do you know that without having read the contract?(As simple change of corporate ownership would not normally require a basic agreement to be changed so, as has been said already, check it matches the current agreement!)
The main consideration is to read the contract signed and see if it has provision for a change of owner, which in software/ IT the provider often has as standard. After all, the reason a lot of companies are bought is because they have customers, and if none of those customers are obliged to stay, goodbye revenue.
macron said:
LooneyTunes said:
The main consideration is that you probably aren’t obliged to enter into the new agreement.
(As simple change of corporate ownership would not normally require a basic agreement to be changed so, as has been said already, check it matches the current agreement!)
How do you know that without having read the contract?(As simple change of corporate ownership would not normally require a basic agreement to be changed so, as has been said already, check it matches the current agreement!)
The main consideration is to read the contract signed and see if it has provision for a change of owner, which in software/ IT the provider often has as standard. After all, the reason a lot of companies are bought is because they have customers, and if none of those customers are obliged to stay, goodbye revenue.
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