Legal Question in Business Law in Louisiana

Contract selling

My cellular telephone company was bought out by a compeditor. I had a 2 year service contract with the company that was bought out. I now want to cancel because of poor service and poor custome relations. The new company tells me that the pervious contract with the company that was bought out is binding with the new company. They are threatening to bill me for the 8 remaining months of the contract and if I don't pay I would be turned into the credit bureau and legal action would be taken. I have heard that once a company sells out that the contracts are no longer binding. Any advice would be greatly appreciated.

Thanks


Asked on 3/09/01, 5:10 pm

1 Answer from Attorneys

Richard Lemmler, Jr. R.P. Lemmler, Jr., Attorney At Law

Re: Contract selling

(Question received by me on 05/18/01)

The key to your situation is essentially whatever the written language of the original contract actually says. In other words, if that contract that you originally signed and agreed to indicates that it can be sold to another company or assigned to another company then whatever it is that you "heard" about cellular phone contracts is probably a lot of baseless rumor and foolishness that just happens to suit your particular needs at this moment. Don't rely on what a friend of a friend of a friend may have said--it probably does not apply to you (and probably didn't even apply to them when they said it). READ YOUR OWN WRITTEN CONTRACT carefully and completely--it will give you the answer(s) you're looking for. Unfortunately, those answers may not be the one's you hope for. If the contract is too complicated or confusing to you, take it to a lawyer and pay a lawyer to read and interpret it for you--the little bit of money you pay the lawyer for that complete understanding of your actual contractual rights may save you time, aggravation and money in the long run. Chances are high that the actual contract probably DOES include language about the event of a "buyout" or "merger" or "assignment" of the contracts and/or accounts of the old company. Contractual rights are always primarily governed by the language of the terms of the actual written contract itself. Chances are also great that the contract does NOT become void just because the original company sells out or sells some of its accounts.

Now, your written contract may also include language & terms about service problems or cancellations. Read that language carefully as well--it may provide you with the ability to properly and safely cancel the contract according to its own terms. Follow those terms PRECISELY in order to avoid defaulting and incurring penalties. It may also provide you with a remedy or means to get the plan reduced or obtain credit for the bad service or interruptions that you may be experiencing. READ YOUR CONTRACT. It alone is probably the "gameplan" or "rule book" that you are going to be forced to follow--you signed it and agreed to it, now you must live by those rules. But you may also be able to "win" by knowing the rules inside and out and, thereby, beating them at their own game.

Good luck.

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Answered on 5/18/01, 9:36 am


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