Legal Question in Business Law in Texas

I am an independent sales representative for a Limited Liability Company (LLC) company in Texas, let's call it 'Company A'.

I have a 10 year contract with Company A. This contract expires on 15 July 2016. I get a monthly commission check from Company A for sales that I have generated.

Company A was recently purchased by another Texas based LLC that I'll call 'Company X'. This sale took place on 16 June 2014.

The last commission check I received from Company A was sent to me at the beginning of July 2014 for invoices paid to Company A in June 2014.

Company X says they have ONLY PURCHASED THE ASSETS of Company A and are not under any obligation to honor the contractual agreements of Company A.

Company X says that while they don't have any obligation to pay me sales commissions through to the end of my contract they will pay me sales commissions, out of the goodness of their heart, for the next three months �July, August, and September � and that�s it.

What do you think? Is Company X obligated to honor my contract? Should Company A have paid me some kind of lump sum payout?

What�s your opinion? Am I screwed? Do I have recourse with Company A or Company X . . . or both? What would you do if you were in my shoes?


Asked on 8/19/14, 12:42 pm

1 Answer from Attorneys
Steven Frankoff Law Offices of Steven Frankoff

While I cannot give you an opinion based upon what is here. I need to see your contract with your initial employer, and the purchase agreement with the company that bought them out. I think as a knee jerk reaction, not a legal opinion or legal advice per se, that you have recourse some where (company A or X). I assume there are still outstanding commissions due to you. If there are you may have a claim in equity, unjust enrichment v. Company X. That is my initial reaction.

If you want to pursue this topic further, you can call or email me [email protected]/ or call at 281 704 6740. This is not intended to be nor should it be considered legal advice a legal opinion or an acceptance of representation, but merely a response to a generalized legal question. Good Luck.

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Answered on 8/19/14, 3:38 pm


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