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An agreement of merger is a legal document that establishes the terms and conditions to combine two or more businesses into one new entity. The business owners of the merging companies agree to sell all their stock and assets to the newly formed company for an agreed upon price.
When a transaction closes, the new company will simply take over performance as the successor-in-interest to the old company. The merger agreement will already assign the rights and obligations under existing contracts to the buyer without a new, specific process for each existing agreement.
When you buy the shares of a company, you ?step into the shoes? of the vendor. This means you take over all contracts that were signed on behalf of the company, as well as all the debts and obligations that existed at the time of sale.
Contracts are never "automatically transferred", the party transferring from and the one transferring to have to make the transfer happen, usually they make a contract. Because contracts usually contain both rights and obligations, transferring one will be good consideration for both sides.
A merger is a combination of two or more business entities in which the assets and liabilities of all the entities are transferred to one, which continues in existence, while all the others cease to exist.
An agreement of merger is a legal document that establishes the terms and conditions to combine two or more businesses into one new entity. The business owners of the merging companies agree to sell all their stock and assets to the newly formed company for an agreed upon price.