Successor Liability
/səkˈsɛsər laɪəˈbɪləti/
Definitions
- (n.) Legal doctrine holding a successor entity liable for the debts or obligations of its predecessor under certain circumstances.
The court applied successor liability to hold the acquiring company responsible for the predecessor’s unpaid taxes.
Forms
- successor liability
Related terms
See also
Commentary
Successor liability is context-specific and varies significantly by jurisdiction; drafters should clearly define the scope in agreements to avoid unintended assumptions of liability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.