| Commentary

115 Lock-out agreements

| Commentary

115 Lock-out agreements

In view of the time and effort involved in the investigation of the target company, the buyer may wish to impose an obligation on the seller not to negotiate with a third party for the sale of the company for a specific period, sometimes known as a lock-out agreement. However, it is not always possible to persuade the seller to enter into such an agreement. Where the seller agrees in principle to enter into a lock-out agreement, care must be taken in relation to drafting. Lock-out agreements commonly impose obligations on the seller to refrain from entering

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