15:24
ok thanks! appreciate the insight
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LSDefine
Simple English definitions for legal terms
assumption clause
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A quick definition of assumption clause:
An assumption clause is a part of a mortgage agreement that says no one can take over the mortgage without the permission of the lender. It can also be a provision in a contract where the person taking over the contract agrees to take on the responsibilities of the person who originally had the contract.
A more thorough explanation:
An assumption clause is a provision in a mortgage or other financial agreement that restricts the transfer of the obligation to another party without the consent of the lender or creditor.
For example, if you have a mortgage on your home, the assumption clause in the loan agreement may prevent you from selling the property to someone else and transferring the mortgage to them without first obtaining approval from the lender.
In another scenario, an assumption clause may be included in a contract for the sale of a business. The buyer may agree to assume certain liabilities or obligations of the seller as part of the purchase agreement.
These examples illustrate how an assumption clause can be used to protect the interests of the lender or creditor by ensuring that they have control over who assumes the obligation and under what terms.