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Rent agreement

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(Querist)
30 January 2016 If company has a rent agreement for a land & if that land transfer for use by new company, whether rent agreement need to be amended in the name of new company? What is the risk of carrying out old agreement in the name of old company.
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CA CMA CS Ram Pavan Kumar Melam

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CA CMA CS Ram Pavan Kumar Melam (Expert)
30 January 2016 Rental agreement is between the parties of landlord and the tenant; and not between the tenant and the land/building. If the landlord sold the land / building to another one, the agreement between the former landlord and tenant gets terminated. It is mutual agreement, new landlord may continue the tenant with a fresh agreement.
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