When a business incorporates, is the company legally bound to honor previous contracts?
cerlandsen11 asked:
My friend signed a 2 year accounting contract with a company to perform accounting duties. One year later, the company incorporates. He still is performing his duty as accountant under the contract he signed. Recently, the Board of Directors of the new corporation told him that they were cancelling the contract he signed. Can he file suit against this company for breach of contract ?
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You betcha, meanwhile, he should try to find new clients. dusty_titus
a contract cannot be canceled without the consent of both the parties in the contract… it has to be fulfilled. Freedom Debt Relief
The best way is sit across the table and find reasons for cancellation of the contract. Best of luck.. pai