Am i held to a non-solicitation agreement if they sell my company?

Company sold my division / product offering due to the bank forcing the company into bankruptcy and selling my division as it is the cash cow of the company. I signed an NDA that has no mention of assigning covenants to any new company nor mentions anything regarding sale. Can the new company enforce the NDA?

1 answer  |  asked May 18, 2017 09:39 AM [EST]  |  applies to Florida

Answers (1)

Phyllis Towzey
Probably not, unless the old company still exists (for example, if it was acquired by a new company and they kept it intact as a subsidiary, then the NDA could still be in effect because it did not need to be assigned). Barring that, so long as the NDA did not contain language expressly permitting assignment, it cannot be assigned or enforced by the new company.

I would advise you, however, to have an attorney review the NDA for you, rather than just relying on general advice on this forum. This is too important an issue for you to take chances, and the cost of paying a consulting fee to an attorney is small compared to the legal fees you'll incur if you have to defend a lawsuit seeking an injunction against you. Further, if the new company has sent you a cease and desist letter, you should have an attorney respond to it, rather than waiting to be sued.

posted by Phyllis Towzey  |  May 18, 2017 11:42 AM [EST]

Answer This Question

Sign In to Answer this Question

Related Questions with Answers

Have an Employment Law question?