I am a new owner on commercial property. Pervious owner had contract with garbage disposal service. In the contract, there is clause " This Agreement shall be binding on the parties and their successor and assigns." I am trying terminate, and garbage disposal company is informing that they would impose penalty on us, not previous owner. Garbage Company could impose penalty on us? then could we get money back from pervious owner
Depends on the exact contract with the refuse hauler and the agreements and disclosures between you and the seller. You might have already agreed to this without knowing you agreed to it.
This is a general Q&A Forum for discussion purposes only. Anything read here should be considered marginal information at best. It would be foolish to make important decisions based on this information. Real-life legal decisions are important and should not be trusted to the free-flow of thoughts on the internet. If you need assistance, hire a professional who can listen to all of the facts and help you make informed decisions.
As it is my understanding that you have not made any direct agreement with this company, apparently there is no privity of contract between you and the garbage disposal service. (A contract is only a documentation of an agreement between parties, and in this case apparently there is no agreement between you and the garbage disposal company.) Thus, they will probably not prevail in any direct legal action against you to enforce the contract they made with the previous owner. Their cause of action would most likely be against the previous owner, with whom they had an agreement.
However, in your sales agreement with the previous owner, you may have agreed to assume this contract. If so, the likely result is that the garbage disposal service would be forced to take action against the previous owner for breach of their contract, the previous owner would then probably take action against you for breach of your sales agreement and/or for indemnity from the claims of the garbage disposal company.
Depending on the amount involved, it might be worth your while to have an attorney review the documents and tell you what your rights are. Depending on the amount of documentation that needs to be looked at, a quick review would probably cost you less than $1000, and more likely about $500.
Hope this helps - good luck.
Any information given herein is for resource and background information only, and does not constitute legal advice and does not establish or imply the establishment of a client/attorney relationship. Any and all readers of the said resource and background information are advised only to seek the assistance of a qualified attorney.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline