Legal Question in Business Law in Oklahoma

Sold Company - Do I Revoke Financial Responsibility?

Last February, I sold my pageant production business. The buyers are currently making payments on it until March of next year, however, we did sign a ''Bill of Sale''. During my tenure as Director, I crowned 6 winners who earned scholarships totaling $1,600. Now that I have sold the rights over to the current business owners, am I still bound to pay these ladies their scholarships, or is it the responsibility of the current owners to take all financial responsibility? Thanks for your reply!

Asked on 2/17/06, 9:20 am

1 Answer from Attorneys

John Graves The Law Office of John H. Graves, PLLC

Re: Sold Company - Do I Revoke Financial Responsibility?

The answer to your question depends on a number of factors including the allocation of financial responsibility in the sale documents and the terms of the scholarship award. That being said, if a business is sold, typically the assets are transferred to the new operator along with the liabilities. Because you are receiving payments and only have a bill of sale instead of a true sale agreement your situation may not be typical.

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Answered on 2/17/06, 11:05 am

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