Clients frequently ask me whether a particular contract for textile rental services is binding on the new owner of an existing account. Most textile rental contracts contain a provision similar to the following: “This agreement shall be binding upon and inure to the benefit of the parties’ successors and assigns.” Many assume that this language is sufficient to bind a new owner to an existing agreement. However, in most instances, if the agreement is prematurely terminated, the new owner has no obligation under the existing agreement, and the textile rental company’s only remedy is to pursue the party that originally ...