| Commentary

113 Pre-contract enquiries

| Commentary

113 Pre-contract enquiries

It is vital that the buyer carries out proper due diligence, in order to obtain up-to-date and accurate information about the target company, its business, assets and liabilities, properties, contracts and employees, as well as details of the sellers of the shares. It would be negligent of the directors of the buyer to make an offer and agree a price for the shares without being fully acquainted with the structure of the target company and its subsidiaries or the nature of their principal agreements. The buyer must also be aware of any steps which the sellers intend

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