What Does the Contract Term “Successors and Assigns” Mean?

by | May 4, 2022 | Topics | 0 comments

General Terms and Conditions, frequently referred to as “Boilerplate,” defines how the Client and Consultant will relate to each other in a business relationship without regard to a specific project.  The following is a critical “Boilerplate” item that if not clearly and equitably stated will likely result in misunderstandings and confrontational situations:

Successors and Assigns – This contract clause is about how parties to a contract may or may not share their interest in the contract with a third party. It is normally stated as a negative that prohibits one or both parties from assigning their interests in the contract to a third party without written permission from the other party.  It is important that both, not only one party, be so constrained.

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JOHN M. LOWE, JR., P.E.

I help design professionals to minimize potential business risk that may arise from their contracts for services.

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