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General contractMedium risk if omitted

Binding Effect (Heirs, Successors and Assigns)

Makes the agreement binding not just on the signing parties but on their heirs, legal representatives, successors and permitted assigns.

In plain English

This clause makes sure the deal doesn't fall apart just because a party dies, a company is taken over, or the property or rights change hands to someone allowed to receive them. Their heirs, legal representatives and successors step into the same shoes and are bound by the same terms. Note it usually only covers *permitted* transfers — one side can't simply hand its obligations to a stranger unless the agreement lets them, and genuinely personal duties (like a specific person's skill) may still end on death.

Relevant law

  • Indian Contract Act, 1872, Section 37 (promises bind the representatives of a deceased party before performance, unless a contrary intention appears from the contract — personal-skill contracts being the main exception)
  • Transfer of Property Act, 1882, Section 40 (certain obligations annexed to land can bind and benefit successors who take with notice)
Educational, not legal advice. Clause wording should be adapted to your specific facts. For high-stakes documents, have a qualified advocate review the drafting.
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