Assumption of Contracts

Assumption of contracts refers to the process in which one party takes over the obligations and rights of another party under an existing contract. This can happen in situations like business mergers, where a new entity agrees to fulfill the terms of a contract previously made by the original entity. The new party essentially steps into the shoes of the original party, assuming responsibility for the contract’s execution and any related liabilities, with the consent of the other original party involved. This ensures continuity in business agreements even when ownership or management changes.