How does a subsidiary &quot;upstream&quot; a contract in the following scenario?
<p>Company B is an 80%-owned subsidiary of Company A. Company B has just signed a contract with Company C. Company A wants the contract (its rights and obligations) for itself.</p>
<p>Can Company A acquire the contract from Company B by taking over 100% of Company B, thereby making it a wholly owned subsidiary? Can it use some other mechanism such as a purchase transfer or assignment of interests to acquire the contract? Or must Company A keep Company B's contract separate even if B is a subsidiary? Must company C agree if this expands the scope of the contract (which was initially for all of &quot;B's&quot; needs of a particular product, and A wants it to supply of all of its needs?</p>

<p>If the contract is transferable then B can transfer the agreement to A regardless of C's opinion. Otherwise A could certainly buy rest of B and then move employees from A to B to  carry out of the contract and the profit would flow to A.</p>

united-states contract-law subsidiaries