Is the purchaser of a company responsible for guarantees made by the seller of the company, if it is Not specified in the contract of sale?
<p>If company A sold its business to company B, which company, A or B is responsible for &quot;service guarantees&quot; made by company A in the event the contract of sale does not address this matter?  Company B will not take responsibility for the cost of labor Guaranteed by company A and is billing clients.  Company A no longer exists, and the client is Sueing company B.  The companies are in New Jersey. Please advise.</p>

<p>Obligations are between the customer and A. That does not change as long as A and B remain separated entities (i.e. there is no merger) or there is some kind of contract that alters it.</p>
<p>There are lots of variations. Did A separate those operations into C (at some point the customer should have agreed to that) and then sold C to B? Did A just &quot;sell&quot; the existing contracts to B (again the customer should have agreed, and then B is the one with the obligation of the customer agreed)?</p>
<p>For some forms of company, B as an owner could no on the hook for A debts, if it goes into bankruptcy, but that would not depend on the legal firm if the company and would have equally affected the previous owner equally.</p>

liability