KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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new customer needs Assignment and Assumption Agr or new contract
August 8, 2025
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new customer needs assignment and assumption or new contract
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Ken,
I have a customer that informed me that they sold their business, after the fact, and would like to transfer the account to the new owner. I informed them that I could not transfer the account and a new customer agreement would have to be completed by the new owner. I offered to stop out to accomplish this. I was informed that the new owner resides outside the area. I emailed the new agreement to the previous owner and informed them to have the new owner complete it and return it to me.
The previous owner is still with the company and currently managing the business. They did not request cancelation of the account. Do I cancel the current account or give them a deadline for receiving the new agreement to be returned before terminating the account.
Thank you,
Bryan
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Response
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You should not be providing any service to the new entity; it's not your customer and it hasn't signed your agreement. You have no contractual protection.
The fact that the principal of the old entity, your customer, still works for, with, etc, the new entity, does not mean that new entity is bound by your contract.
You could have had your customer and the new entity sign an Assignment and Assumption Agreement. You could also have the new entity sign a new All in One, which would be preferably because you would have a new contract with new term.
There is simply no other safe answer. Do no security or fire alarm services without a proper Kirschenbaum Contract TM.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com