Company A signs a contract with company B, a scrap metal vendor, to buy all of company A’s scrap metal produced. Company A sells out to new owners and changes names. Company B continues to purchase scrap metal from the new company A under the contract terms. New company A wants to change scrap vendorswhen the contact expired, but there is a 1 year auto renewal clause if Company A does not give 30 days written notice from the expiration of the contract. Since Company B did not sign any type of Novation to the new Company A’s name is the contract null and void?
The parties to the contract have not changed; they are still the purchaser company and the scrap vendor. The obligations have not changed; they are presumably based on amounts of stock and monetary value.
The only changes are in the name of one party and its ownership, so unless the contract permits termination for those reasons (not unheard of, if a contract has been intended to provide/avert support from/by a particular party or symbolism) the contract still stands with all its terms. A novation is not needed.