Contract Glossary

Successors and Assigns

Definition

A clause ensuring that the contract's rights and obligations transfer to anyone who takes over a party's business, whether through acquisition, merger, inheritance, or assignment. It makes the contract stick even when the original parties change.

In Practice

If your software vendor gets acquired, a successors and assigns clause means the new owner must honor your existing contract terms, pricing, service levels, everything. Without this clause, the acquiring company might argue they're not bound by your deal. It's standard boilerplate, but don't skip over it.