successors and assigns
Definition
This phrase means that a contract applies not just to the people or businesses who signed it, but also to anyone who later takes over their rights or responsibilities. A successor is someone who inherits a business through a merger or ownership transfer, while an assign is someone who has been handed specific rights or duties under the contract. When you see this phrase in a contract, it means the agreement travels with the business, not just the person who signed it.
Example
You sign a five-year supply agreement with a vendor, and that vendor later gets bought by a larger company. The phrase 'successors and assigns' means the new owner must honor the same contract terms you originally agreed to.
Watch Out
If you ever sell your business, this phrase means your buyer automatically inherits all the contracts containing it, so make sure you understand every obligation those contracts carry before you sign anything.
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.