Legal effect of change of company name

Legal effect of change of company name

Can a company change its name? What is the change of name? A contract is a legally binding agreement entered into between two or more parties.

Therefore, after signing the contract, the parties must abide by the terms and provisions in the contract. Otherwise, the party will be in breach, and the non-breaching party can bring a breach of contract claim against the breaching party. Mutual Assent One party must make an offer to another party. Thereafter, the party receiving the offer must accept the offer in its original state without modifying it in any way. Once the offer and acceptance have been met, the parties must offer some sort of consideration to one another.

The parties in the contract must confirm that they are bot. See full list on upcounsel. When a company changes its name while the contract is in effect, the parties will want to ensure that they modify the terms. Some contracts might already include terms in the contract, which identify what happens if a company changes its name. For those contracts not including such language, it is important for the parties to immediately modify the contract to identify the change in name.

But, if the parties don’t immediately modify the contract, does that mean the contract will be void and unenforceable? If the electrical company changes its name while the work is being done on the home, this doesn’t mean that the change in name will void the contract. In fact, both parties could simply agree to continue the contract as is, without modifying the name.

However, let’s assume that the electrical company changed its name, and all of a sudden disappeared after taking the money from the client without finishing the work. The company is still under a legal obligation to do the work. If the company doesn’t complete the job, it will be in breach, and the injured homeowner can bring a breach of contract claim against the electrical company. Some companies engage in this type of fraudulent activity as a way to earn money and consistently change its name to avoid doing the work. The client then finds out that the company wasn’t properly registered in its respective state, and is left with incomplete work after having already m. If you think about it, that would be a neat way to avoid debts , by just changing the name of the business.

Legal effect of change of company name

The entity, whatever its current name, is liable under the contract. Not for legal reasons but for commercial reasons you will want to let everyone doing business with the entity know of your name change. There are plenty of advantages of a legal name change. If you have one that you find embarrassing or that brings the wrong kind of attention , changing it may relieve you of a lot of embarrassment or hassle.

One of the best parts is that the sky is the limit. You might need to trace company name changes over time. If the documentation does not refer to a limited company, then it may be that you contracted with the builder himself as an sole trader. In that case, a change of business name would not usually affect the validity of a contractual guarantee given by the builder. The change of name takes effect on the date of the issue of the altered certificate.

The change does not affect any rights or obligations of the company or render defective any legal proceedings by or against it. Any legal proceedings that might have been continued or commenced against. A” changes its name to “B” which is not the name of a pre-existing company and name “A” ceases to exist.

If you change your company name , your brand is left in the past. The second is to maintain the original name as the entity’s legal name and create a DBA for marketing and branding purposes. Option – File LLC Articles of Amendment with the state to change the business name. By filing a document called “Articles of Amendment,” an LLC can request to change its business name.

The specific action required may vary depending on the type of business. In some situations a name change may require a new Employer Identification Number (EIN) or a final return. In any event, I would not assume that nothing needs to be done and I would be proactive in discussing this issue with the team. Often, the change is part of a corporate redefinition of its mission or an attempt to strengthen its brand.

Company Name (Form NNC2) has been processed by the. Change of Company Name. Pass a Special Resolution to change the company name. The said Special Resolution and the Articles of Association as altered in relation to change of company name ( only) need not be delivered to the Registry.

Legal effect of change of company name

Customers and clients need to be informed that the name of the business has been changed. A company name change announcement letter is sent for this purpose. This way the clients know that the company has only changed its name and they will continue to have the same quality work and products from them since the company has only changed its title.

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