This is the Successors and Assigns paragraph:
“12. SUCCESSORS AND ASSIGNS: The heirs, executors, administrators, successors and assigns of the undersigned are bound by the terms of this Agreement.”
Review
Set out below and marked in bold and italics are those words that are inserted by me to assist in the review. They are not set out in the clause itself. Let’s look at that paragraph in a little more detail:
“12. SUCCESSORS AND ASSIGNS:
The
- heirs,
- executors,
- administrators,
- successors and
- assigns
of the undersigned are bound by the terms of this Agreement.”
COMMENT
What is the purpose of this clause? It’s to make sure that even if you are dead, you are still stuck with this deal. That means that your heirs will still be liable.
It also places an obligation upon your executors and administrators to follow through. You would have an Executor if you had made a Will. Without a Will, then the Court would appoint an Administrator. Well, that was the way it was 30 years ago. Now, we have an Estate Trustee with a Will and an Estate Trustee without a Will. So, we are somewhat out of date here.
Naturally, they are only responsible for the transaction by spending your money, not their own money.
Next, successors are included as are any assigns. A successor will be someone taking over from you and an assignee is someone who is taking over because they have bought out your interest. If you purchase a property and now list it for sale by way of an assignment, your assignee will still be obligated to follow through on your behalf.
In all cases, you are the one who is signing off for them and agreeing that your own estate etc. will continue with the responsibility.
Brian Madigan LL.B., Broker