We use a contract document at my office that includes the following statement and I can't get a hold of anyone who is able to help from our legal group. Can anyone tell me what this means:

"This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and assigns."

It is included in a contract document for individuals signing on to work. We're all baffled which is ridiculous because it was written by OUR company. How's that for sounding slightly ignorant...Thanks!

 

What's the context? It just sounds like something put in there that says "this contract is binding and is between the company and the employee."

 

Is it pertaining to insurace benefits?

 

Whatever the agreement is shall work for and remain with those it pertains to, along with their successor and underlings...

right?

 

Thanks for the responses.

It's not pertaining to benefits or insurance as this is a contract for incorporated contractors who do not have benefits, nor is insurance relevant as any necessary is covered by our client (for whom they will be working).

I gather that it is just what you guys said, an indication that the contract applies and is binding between us and the contractor, and anyone working under them.

I guess so? I just don't know why they chose the word "enure" in there. Just feels like their trying to F people up and I hate that. I'm tired of explaining these contracts to people because legal wouldn't word them in easily-understandable English.