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I hope this message finds you well. I am a licensed attorney with over a dozen years of experience handling matters of this nature. It is a pleasure to assist you today.
I will answer your questions in the order in which they appear:
(1) The answer is that you can, since you bought the rights to the old salon. However, the best business practice here is to change our the contract name with an addendum to the existing contract. This will be much cleaner for all parties involved if litigation were to ensue. It will also draw less attention from the IRS and other regulatory entities if you go ahead and switch things over.
(2) You can deny her, but I would let her out anyway. The reason is less legal and more elimination of potential hassle (both legally and in business). Before making a decision, read through the contract...some contracts of this nature will have emergency cancellation provisions that have a penalty for early cancellation associated therewith. If that is in the contract, let her out but enforce the penalty. If it is not, I would just let her out because it is the path of least resistance here.
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Thank you and best wishes!
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