Define: Assumption

In legal terms, “assumption” typically refers to the act of taking on or accepting responsibility for a debt, obligation, duty, or risk. It may involve explicitly agreeing to be bound by the terms of a contract or legal agreement previously entered into by another party, thereby assuming the rights and obligations associated with that agreement. Assumptions can occur in various contexts, including contract law, real estate transactions, corporate acquisitions, and estate administration. For example, when a party assumes a mortgage, they agree to take over the mortgage debt and become responsible for making the required payments. Assumptions may be explicit, involving a formal agreement between the parties, or they may be implicit, arising from the conduct or actions of the parties. Assumptions are subject to legal principles and requirements, such as the need for consideration, compliance with contractual terms, and adherence to statutory or regulatory requirements.

Assumption refers to the act of taking on or accepting a responsibility, obligation, or liability that was previously held by another party. In legal terms, assumption can occur in various contexts, such as assumption of risk, assumption of debt, or assumption of a contract.

Assumption of risk is a legal doctrine that holds individuals responsible for the risks associated with their actions or participation in certain activities. It implies that individuals are aware of the potential dangers involved and voluntarily choose to accept those risks. For example, if someone participates in a high-risk sport like skydiving, they are assumed to have knowledge of the risks involved and willingly assume responsibility for any resulting injuries or damages.

Assumption of debt refers to the transfer of an existing debt from one party to another. This typically occurs when a new party agrees to take over the repayment obligations of an existing loan or financial obligation. The new party assumes the rights and responsibilities associated with the debt, including making timely payments and adhering to the terms and conditions of the original agreement.

Assumption of a contract involves one party taking over the rights and obligations of another party under an existing contract. This can occur through a novation, where all parties involved agree to substitute one party with another, or through an assignment, where one party transfers their rights and obligations to another party. The party assuming the contract becomes legally bound by its terms and conditions and assumes the same rights and liabilities as the original party.

In summary, assumption refers to the act of taking on or accepting a responsibility, obligation, or liability that was previously held by another party. It can occur in various legal contexts, such as assumption of risk, assumption of debt, or assumption of a contract.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.