successors
Definition
Successors are the people or businesses that take over your rights and responsibilities when a business is sold, merged, or transferred to new ownership. When a contract mentions successors, it means the agreement stays in force even after the original parties are no longer running the show.
Example
If you sign a five-year lease and then sell your bakery, the new owner (your successor) is still bound by the terms of that lease.
Watch Out
Always check whether contracts bind your successors, because selling your business does not automatically let the new owner walk away from obligations you agreed to.
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.