successor in interest
Definition
A successor in interest is a person or company that takes over the legal rights and responsibilities of another party, usually because they bought the business, inherited it, or acquired its assets. When you become a successor in interest, you essentially step into the original party's shoes and the contract or agreement continues as if you were always part of it.
Example
If you buy a local bakery and a supplier contract comes with the purchase, you become the successor in interest to that contract and the supplier must honor the same terms they gave the previous owner.
Watch Out
Before buying any business, you should have a lawyer review what obligations you might be inheriting as a successor in interest, because you could unknowingly take on old debts, lawsuits, or unfavorable contracts.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.