Q: Can a company buy out another company and "take over their contracts"? Can contracts renew automatically without notice?
We are trying to fire our present garbage company and change to a different company with much better pricing. Our original company was bought out by Waste Management a few months ago. They claim that we had a contract with L&K started in 2006 and that it went for 5 years and then renewed automatically. My sister was not aware of a contract and received no notice about renewing. Waste Management says our contract goes until 2021 and it will cost $1000+ to "buy out the contract". In Missouri can they do this?
A: What you have is a contract issue. An attorney would need to read the contract to provide you with sound advice. That being said, I’m familiar with waste industry contracts and they are generally harsh. The often renew automatically unless the customer gives sufficient notice of non-renewal. My guess is that you are bound by the prior, renewed contract but that is just a guess.
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