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WPSTRONG
03-28-2010, 06:31 PM
Hello everyone !!!
I'm searching for some info....I currently own a few grounds maintenance contracts that include only lawn mowing and snow removal. i am busy with other things this year already and want to sell the remaining 10 months of a two year contract. I have a buyer but we are both worried of the legalities. What restrictions would bar me from legally transfering him this contract? Also I live in MN...any difference here??


All advice is always appreciated !!!!!!!

ksJoe
03-28-2010, 11:21 PM
First thought that comes to mind, is just give the customers a call. Tell them you're wanting to wind down this business, and you've found another contractor to take over your contracts. Ask them if they're ok with that and would sign an amendment to transfer the responsibility to the new guy.

A downside could be if the customer wants out too. They might just ask you to just cancel the contract.

WPSTRONG
03-28-2010, 11:26 PM
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WPSTRONG
03-28-2010, 11:32 PM
I wish I could go to the customer but in this case it is a large account and they would take the opportunity to end the contract as they already think they can get a cheaper price than locked in at with me. I don't want to lose the work if I can't sell it but no longer want the work. Can they really do anything about me selling it ???
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ksJoe
03-28-2010, 11:39 PM
I'm not a laywer, and I didn't even sleep at a Holiday Inn Express last night.

But my guess is, if your contract doesn't have a clause to say you can sell it, then selling it would be a breach (which could mean they could walk). It might be different if you retained the contract yourself, but then subcontracted the work to the other guy. Then YOU are fulfilling the contract similar to if you hired an hourly employee to do it. Since its only 10 months, this might be easiest way to do it. Agree on how much you were going to sell it for, then pay the other guy the difference to sub it.

But legally I don't know what I'm talking about.

SuperiorService.110mb.com
03-28-2010, 11:40 PM
The contract is between you and the company. Not the naxt guy you pass it on too. They could let him cut it for months and never pay him and that would hold up in court a say that guy didn't even have permission to be on the property. If they are willing to sign the contract to him then he can service the property and get paid for it as the contract will be between them and the new guy. Just SUB the properties to him and still invoice under your company and pay the guy yourself. Just be sure the SUB has the same meets the insurance requirements and tell him that if anyone asks the company name to use yours.

WPSTRONG
03-28-2010, 11:49 PM
Good ideas.... I don't know this guy or his work ethics but he is more established than me which would suggest he is at least reliable. I guess I am just looking to wipe my hands of it. My contract has no language for transfer or sale either but not convinced it needs it yet.
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STCL01
03-29-2010, 10:35 AM
Some contracts have an assignability clause which will state that the contract is not assignable by either party without written notice and agreement to the other. You need to check and see what you have to work with. If you have your business placed into and entity (corp, inc., LLC, etc.) then you may be able to sell the business and the buyer can then do the contractual work under the name of your entity, which it bought. BUT, this goes back to the Assignment clause if one exists. Also remember to check your specific State law. Laws of the States differ.

WPSTRONG
03-29-2010, 10:47 AM
That's kind of why I'm. In here...for those answers. The contract was written by me and is basically a performance contract with installments. The only language about termination states no termination allowed unless a continued performance issue or by mutual agreement. I'm in MN
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georgiagrass
04-24-2010, 10:32 PM
Consider going to the customer and negotiating a release from the remaining 10 months on your contract in return for a longer term contract at a lower price with your buyer.