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

question 54

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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Definitions:

Profitable Product

A good or service that generates a financial gain for a business, surpassing the costs associated with developing, producing, and marketing it.

QuickBooks Backup File

A file created by QuickBooks software to save a copy of all the company's accounting data.

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Customer Section

A part of an accounting or sales software where information related to clients, such as transactions and contact details, is stored.