Commentary

137 Terms of typical contribution agreement

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

137 Terms of typical contribution agreement

| Commentary

137 Terms of typical contribution agreement

A full form contribution agreement1 will not only allocate responsibility for claims made by the buyer but also deal with a number of other matters arising from the share sale agreement2. In relation to claims by the buyer, the agreementusually provides that the sellers are liable to contribute pro rata according to their share of the purchase price3. In certain circumstances, it may be appropriate to include additional provisions, for example imposing greater responsibility upon sellers who are directors for breach of certain specified obligations on account of their

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