using awk is eaiser to handle this kind of task:
awk -v RS="" '{$1=$1}7' file
if you want to keep multiple spaces in your each line, you could
awk -v RS="" -F'\n' '{$1=$1}7' file
with your example:
kent$ cat f
some
sentences
are
like
this.
some
sentences
foo
bar
that
kent$ awk -v RS="" '{$1=$1}7' f
some sentences are like this.
some sentences foo bar that