business
Break Contract after company sells to new owners and changes names
<p>Company A signs a contract with company B, a scrap metal vendor, to buy all of company A’s scrap metal produced. Company A sells out to new owners and changes names. Company B continues to purchase scrap metal from the new company A under the contract terms. New company A wants to change scrap vendorswhen the contact expired, but there is a 1 year auto renewal clause if Company A does not give 30 days written notice from the expiration of the contract. Since Company B did not sign any type of Novation to the new Company A’s name is the contract null and void?</p>

<p>The parties to the contract have not changed; they are still the purchaser company and the scrap vendor. The obligations have not changed; they are presumably based on amounts of stock and monetary value.</p>

<p>The only changes are in the name of one party and its ownership, so unless the contract permits termination for those reasons (not unheard of, if a contract has been intended to provide/avert support from/by a particular party or symbolism) the contract still stands with all its terms. A novation is not needed.</p>
