Case Conclusion Date:April 29, 1981
Outcome:Changed the law in Texas on two points.
Description:Prior to this case, upon the sale of a business, if the buyer assumed the debts of the seller's business and then did not pay those debts, the only way the seller could recover for that breach of their agreement was if the seller paid off all those debts first. By that time, the buyer of the business has usually run the business into the ground and there are no assets left that could be used to pay the debts. This case changed that law in Texas. It also changed the law regarding damage to credit reputation.