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Category: Exclusion of Consequential Damages

Trends in M&A Provisions: Exclusion of Consequential Damages

In merger and acquisition (“M&A”) transactions, the definitive purchase agreement (whether asset purchase agreement, stock purchase agreement, or merger agreement) typically contains representations and warranties and related indemnification covenants. [2] Buyers and sellers often negotiate the scope and types of damages subject to indemnification under the purchase agreement, including...