Okay, not my area of expertise by any means. Maybe Joe from Chi Town will chime in. But, I think jes is right and you can dump the old contract. And parados has a good question, and a good point: what did you buy? Did you acquire the legal entity that entered into the contract with the cc processing company? I assume not, since you said you bought the company using a new legal entity. And so, if you did not acquire the legal entity that entered into the contract with the cc processing company, you don't have "privity of contract
" with that processing company. How would that processing company be able to charge the cancellation fee? That's what I would argue. And if in the purchase contract you didn't agree to assume any contracts the prior company entered into, what recourse do they have against your company?