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Buying contracts / accounts?

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  • Buying contracts / accounts?

    I'm planning on buying accounts/contracts from another LCO in my area this week and he has them all on contracts with an early cancellation fee. My question though is, if I buy them, do the contracts transfer over to me? All of these customers signed contracts with him for the season but now if I buy them, will they be able to still cancel with me?

  • #2
    You should probably take the contracts to a contract attorney and have them read it over. The one near me charges $240 an hour. Might be work that little bit if you are dropping a lot on accounts.

    Like buying a used truck, get it inspected first.
    Andrew Baker
    Landscape Contractor
    Neighborhood Lawn Care, Inc
    Vancouver, WA


    • #3
      Are you buying the business or just the contracts?

      I would figure if you bought the business you would own the contracts as the contract was with the business.

      But if you are buying just the contracts, you should look to see if there is a transfer agreement in them.

      For instance, here is a contract that says 'Joe's Lawn Care may transfer the customer to a different service provider without liability, upon notice to you.'

      Now you should still get professional legal advice, but this was my 2cents.

      Another thing you could do is meet all the customers you want to buy. Have the current owner introduce you and say you will be taking over. You could see how many stick with you for a certain specific period of time and them pay a total value based on that number.

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