Material Adverse Effect Clause

Abstract:

Regardless of whether you are a buyer or a seller, and regardless what the object of the contract is, it is essentially important that you seek to protect your rights through various clauses that must aim to provide clearness to contractual obligations, definitions of breach, and consequences thereof. The article addresses a number of interest-protective legal mechanisms and necessity of their explicit incorporation in the contract. With emphasis on Material Adverse Effect clause the paper focuses on its exigency and applicability.