This happened to me last year. My landlord sold our compound to another company. My contract had two months left (and it also had an autorenewal clause) so theoretically it should have been renewed at the same price.
Alas, the day that clause kicked in we got letters from the landlord saying the place was sold and that a new company would be contacting us shortly. Our caretaker was frantic since he was told that there was no job for him and he would be sent back to Nepal.
A week later we got a letter from the new landlord giving their lawyers number. I called him immediately and he didn't seem to have an idea about the contract renewal or pricing. After a week of going around in circles he put me through to the property manager.
He told me that the rent was going to be increased by QR2000 immediately. I tried to explain that I had a contract and he said that it was with the old company so was no longer valid. I have no idea of the legality of what he was saying...
I then told him that the price was too high so I was moving out - he said that I would have to give him two months notice since I was breaking the contract (does anyone see the Catch-22 situation developing in this narrative?)!
I tried to point out that it was ridiculous to use a clause in the contract which he told me was just invalid! Anyways, we ended up going back and forth and finally he agreed that if he got a tenant I could move out without the notice....(which happened).
Now since you're a law prof, I'm going to leave it up to you to report to us if contracts can just become void upon sale. It seems pretty ridiculous to me - I mean, if someone sells a business they should have to honour existing contracts.
I didn't bother finding out since I found a nicer place at a better price (can you believe that?!). But I'd still be interested to know the legalities of all of this.
This happened to me last year. My landlord sold our compound to another company. My contract had two months left (and it also had an autorenewal clause) so theoretically it should have been renewed at the same price.
Alas, the day that clause kicked in we got letters from the landlord saying the place was sold and that a new company would be contacting us shortly. Our caretaker was frantic since he was told that there was no job for him and he would be sent back to Nepal.
A week later we got a letter from the new landlord giving their lawyers number. I called him immediately and he didn't seem to have an idea about the contract renewal or pricing. After a week of going around in circles he put me through to the property manager.
He told me that the rent was going to be increased by QR2000 immediately. I tried to explain that I had a contract and he said that it was with the old company so was no longer valid. I have no idea of the legality of what he was saying...
I then told him that the price was too high so I was moving out - he said that I would have to give him two months notice since I was breaking the contract (does anyone see the Catch-22 situation developing in this narrative?)!
I tried to point out that it was ridiculous to use a clause in the contract which he told me was just invalid! Anyways, we ended up going back and forth and finally he agreed that if he got a tenant I could move out without the notice....(which happened).
Now since you're a law prof, I'm going to leave it up to you to report to us if contracts can just become void upon sale. It seems pretty ridiculous to me - I mean, if someone sells a business they should have to honour existing contracts.
I didn't bother finding out since I found a nicer place at a better price (can you believe that?!). But I'd still be interested to know the legalities of all of this.