Contracts from previous owners.

Hi I purchased a business last year and an advertising company is calling and said that he has a contract signed by the previous owner from 2014. The contract is for advertising and that the account is now overdue because the yearly fee was not paid for in Jan of this year. I was never informed of this contract by the previous owner and now the advertising company says that I am responsible for the fees since Jan because it is automatically renewed every year (rolled over) and a written notice has to be given for cancellation of contract. My question is, am I responsible for past fees since I was not aware of this contract? Also I am not the person who signed the contract so am I eligible to cancel it. Thank you


Asked over 3 years ago in Bolton, Ontario
Categories: Municipal Law  Contracts  Business Law

Answer Now

Mike C Stewart, P.Eng

Answer by Mike C Stewart, P.Eng

VerifiedBritish Columbia lawyer

Hi there,
Since this is a business contract, you can't get out of it based on consumer protection laws.
If the contract was between the advertiser and the incorporated company you bought, then the incorporated company is bound by the terms of the contract. You (personally) are not bound. But the Company is.
Now, having said that, I am aware of these advertisement contracts you speak of which auto-renew. If you review the terms of the contract very carefully you may find a way out of the contract. If you cannot figure it out, then you can get a lawyer to do it for you. I have reviewed one of these before and found significant problems witht he contract.
Mike

Posted over 3 years ago

Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation). Contact Mike C Stewart, P.Eng, or search the Lawyer Directory.

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