A consultant or a vendor working with a company. A startup with its co-working space provider. An author with her publisher. Two companies negotiating a merger or an acquisition. Each of these relationships has one underlying tenet – a contract. Within a contract, there’s a clause that we often ignore, but is becoming a critical factor to consider now – Force Majeure, for a normal contract, and/or Material Adversity Clause (MAC), for a merger
Business News›Prime›Corporate Governance›God (or Devil) is in the detail: how one clause can give companies more grief during this crisis
Corporate Affairs
God (or Devil) is in the detail: how one clause can give companies more grief during this crisis
Synopsis
Can the force majeure or Act of God clause for a standard contract and the material adversity clause for an M&A become a potential deal-breaker during Covid-19? ET Prime got in touch with a legal firm and an investment banker to break down the possible impact of these clauses. We also considered the possible solutions.
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