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A Debt Assumption Agreement is a crucial document used in financial restructuring, corporate reorganizations, and debt management scenarios under Indian law. This agreement becomes necessary when one party wishes to take over the debt obligations of another, commonly occurring in business acquisitions, group restructuring, or when a parent company assumes its subsidiary's debt. The document must comply with the Indian Contract Act, 1872, Transfer of Property Act, 1882, and other relevant Indian legislation. It typically includes detailed provisions about the debt being assumed, payment terms, security arrangements, representations and warranties, and the rights and obligations of all parties. The agreement ensures a smooth transition of debt obligations while protecting the interests of all parties involved, particularly the creditor's rights to recover the debt.

1. Parties: Identification of the Original Debtor, New Debtor (Assuming Party), and Creditor with their complete legal names and addresses

2. Background: Recitals explaining the original debt obligation, reason for assumption, and parties' intention to transfer the debt obligations

3. Definitions: Key terms used throughout the agreement including 'Original Debt', 'Assumed Obligations', 'Effective Date', and other relevant definitions

4. Assumption of Debt: Core provision describing the debt being assumed, including amount, terms, and conditions of assumption

5. Representations and Warranties: Statements of fact and assurances from all parties regarding their capacity, authority, and the debt status

6. Original Debtor's Obligations: Ongoing responsibilities and obligations of the original debtor, if any

7. New Debtor's Obligations: Specific obligations and commitments of the assuming party

8. Creditor's Consent and Rights: Express consent of the creditor to the assumption and any retained rights

9. Payment Terms: Details of how and when payments will be made under the assumed debt

10. Events of Default: Circumstances that constitute default and consequences thereof

11. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

12. Notices: Process and addresses for formal communications between parties

13. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, amendments, etc.