Pacta sunt servanda - also applicable in M&A contracts and in times of COVID-19?

Corporate Litigation Webinar

Our German Corporate Litigation team regularly hosts webinars on different corporate litigation topics.

Corporate purchase agreements are affected by the Corona pandemic in a variety of ways:

Border closures, shutdowns, short-time work and quarantine lead to production losses, delivery delays, price increases and payment difficulties, even plant closures. This necessitates a reassessment of the target. What risks can be expected? Which claims can be enforced regardless of official orders? In addition, it can be observed in practice that purchasers of companies are increasingly attempting to withdraw from company purchase agreements or at least to enforce a reduction in the purchase price or claims for damages. This depends on the interpretation and application of the agreements made, in particular material adverse change clauses, earn-out provisions and closing conditions.

We showed you which legal questions arise in times of the Corona pandemic prior to the execution of company purchase agreements and which opportunities and risks have to be considered when weighing up the next steps.

Please click here for more information (in German).

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