Re: Account worth

[Nomen Nescio <nobody@xxxxxxxxx>]

>technically, without a contract...you have nothing to sell.

Not necessarily.  If the seller has his customers signed up to
month-to-month contracts, the accounts may still have value, though
probably less than a longer-term contract would be worth.

If the seller has no contracts at all, or contracts that don't contain the
proper language to limit liability, the buyer may require the seller to
sign his accounts up on the buyer's contract form as a condition of sale.
Not the best arrangement for the seller, obviously.

Finally, nobody has mentioned the guarantee period.  The seller will be
expected to guarantee that the accounts he sells will continue making
payments to the buyer for some period of time after the sale.  Part of this
is to keep sellers from getting paid for deadbeat , cancelled, or
nonexistent accounts, part of it is to protect the buyer from paying for
accounts that cancel or go out of business a short time after the sale.
The buyer holds back a percentage of the purchase price until the end of
the guarantee period.  Even on month-to-month contracts, this amount gives
the buyer some protection.