Consumer Law, Warranties Validity of Contract after company sold

[Antoine42]

Hi,
I live in Pennsylvania and I own a publishing company (A Sole Prop).
At the moment, we are under a two-year agreement with a distributor, which sells our books to Amazon, bookstores, etc.

In a few months, however, I will be selling my company to another publishing company which has it own (and much better) distribution arrangements.

My question is - when I sell my company to Company ABC (which is an LLC and I would become 50% owner), does my contract with my current distributor become null?
I certainly hope so, because we will want to take advantage of the HUGE increase in savings that the new company's distributor provides.

When I sell the Sole Prop, we are forming an LLC partnership and we are changing the name of the company and the EIN.

My current contract has a clause about assignment. It reads - and this is paraphrasing - that "Except by the owners or assigns or successors of either party, this contract may not be assigned."


Thank you everyone for your help!

 

[lwpat]

You will need to terminate your current contract in accordance with the provisions in the contract.

 

[Antoine42]

Well, the contract's provisions include that it is valid for 2 years.
It really does not have a provision for terminating besides bankruptcy or when the contract expires (in about 20 months from now).

Obviously, we'd like to terminate it when I sell the Sole Prop to the newly formed Partnership.
So, my question is -- when I sell my Sole Prop, it that a sufficient "reason" for allowing us to end our contractual obligation with this distributor?

Thank you.

 

[seniorjudge]

Q: So, my question is -- when I sell my Sole Prop, it that a sufficient "reason" for allowing us to end our contractual obligation with this distributor?

A: Only if you are allowed to do so under the contract which, if I understand your posts, is not in there. So, now you must negotiate.