Enurement: Overview, definition, and example
What is enurement?
Enurement is a legal term used to describe how the rights, benefits, and obligations under a contract apply not only to the parties involved but also to their respective successors, heirs, and assigns. In other words, a contract’s provisions may “enure” (or extend) to other entities or individuals that may come into play over time, such as successors in interest, third parties, or those who inherit or assume responsibilities under the contract. This principle ensures that the contract is binding and enforceable even when ownership or control changes hands.
Why is enurement important?
Enurement is important because it ensures that the benefits and obligations of a contract are transferred and remain valid, even as parties change over time. This is especially important in long-term agreements, such as leases, service contracts, or mergers and acquisitions, where the responsibilities and rights may pass from one entity to another. Enurement helps maintain continuity in the enforcement of contractual terms and provides security for all parties involved, knowing that the contract’s provisions will not be lost or ignored due to changes in ownership, management, or other circumstances.
Understanding enurement through an example
Imagine a company enters into a lease agreement for office space. The lease includes an enurement clause stating that the rights and obligations under the lease will apply to not only the original company (the tenant) but also its successors and assigns. If the tenant company is acquired by another company, the acquiring company will still be bound by the terms of the lease, including paying rent and adhering to other provisions, even though they were not the original party to the agreement. The lease agreement “enures” to the benefit and responsibility of the new owner.
In another example, an individual enters into a contract with a service provider to maintain their property. The contract includes an enurement clause that ensures that if the individual sells the property to someone else, the buyer will inherit the rights and obligations under the contract. The service provider would continue to provide maintenance services to the new property owner under the same terms.
An example of enurement clause
Here’s how an enurement clause might appear in a contract:
“This Agreement shall enure to the benefit of and be binding upon the Parties hereto and their respective successors, assigns, heirs, and personal representatives.”
Conclusion
Enurement is a legal concept that ensures the rights and obligations under a contract extend beyond the original parties to include successors, assigns, or other parties who may come into play during the contract's term. It helps ensure that contracts remain enforceable and that the benefits and responsibilities outlined in the contract continue even if ownership, control, or parties change. Including an enurement clause provides clarity and protects all parties by ensuring the contract’s terms apply as intended, regardless of future changes.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.