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Delaware Supreme Court reaffirms that express agreement to negotiate in good faith is enforceable

12 July 2013

M&A Update

In SIGA Technologies, Inc., v. PharmAthene, Inc., the Supreme Court of the State of Delaware reaffirmed that an express agreement to negotiate in good faith in accordance with a term sheet is an enforceable obligation. The Supreme Court also ruled that a trial judge may award expectation damages to the non-breaching party where the trial judge makes a factual finding, supported by the record, that the parties to a preliminary agreement would have reached a final agreement but for the breaching party’s bad faith.

Read more: Delaware Supreme Court reaffirms that express agreement to negotiate in good faith is enforceable

The team

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