A contractual document permitting a new party to accede to an existing agreement. It effectively binds the incoming party to the original contract’s terms and conditions as if they were a signatory from the outset. For example, in a limited partnership agreement, a new limited partner would utilize this mechanism to become a party to the existing partnership arrangement.
This mechanism provides efficiency and reduces the need to renegotiate entire agreements when new parties need to be added. It ensures uniformity and consistency in the application of the underlying contract across all parties involved. Historically, such documents have become prevalent in complex multi-party transactions, private equity investments, and syndicated lending arrangements to streamline the accession process.
