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Material Adverse Change Clauses (MACs) Are a Means for the Parties

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Essay

Material adverse change clauses (MACs) are a means for the parties to the contract to determine who will bear the risk of adverse events that occur between the signing of an agreement and the closing. MACs are frequently not stated in dollar terms. How might MACs affect the negotiating strategies of the parties to the agreement during the period between signing and closing?


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