Legal Question in Business Law in Illinois

I am an independent contractor and work for a company that is dissolving. Am I still bound to the contract I signed with them in regards to no compete and no solicitation?

Asked on 6/18/20, 6:04 am

1 Answer from Attorneys

David K. Staub Staub Anderson LLC

That isn't an easy question. While a dissolved corporation cannot continue to conduct business after dissolution, Section 12.30 of the Illinois Business Corporation Act expressly states that "Dissolution of a corporation does not [p]revent suit by or against the corporation in its corporate name." So the corporation could sue to enforce the contract. A bigger question is whether it could win such a lawsuit. In order to enforce restrictive covenants in Illinois, a party must have a protectable interest. Depending on the circumstances of the dissolution and what happens to the business assets, there may be no protectable interest and therefore the contract may be unenforceable.

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Answered on 6/18/20, 12:46 pm

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