Indemnification clauses in private M&A transactions in Mexico

The indemnity clause is recurrently implemented in sale and purchase agreements, in order to distribute the risk assumed by the parties with respect to the different unforeseen risks and possible defaults. In the case of M&A transactions, a correct allocation of risks du...

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Bibliographic Details
Authors: Garibay Güémez, Francisco Javier; Alonso Márquez, Sebastián Fernández
Format: Article
Status:Published version
Publication date:2023
Country:Perú
Institution:PUCP
Repository:Revistas - Pontificia Universidad Católica del Perú
Language:Spanish
OAI Identifier:oai:ojs.pkp.sfu.ca:article/28374
Online Access:http://revistas.pucp.edu.pe/index.php/themis/article/view/28374
Access Level:Open access
Keyword:Indemnification clause
M&A
Sale and purchase agreements
Companies
Cláusula de indemnización
Contratos compraventa
Sociedades
Description
Summary:The indemnity clause is recurrently implemented in sale and purchase agreements, in order to distribute the risk assumed by the parties with respect to the different unforeseen risks and possible defaults. In the case of M&A transactions, a correct allocation of risks during negotiations is indispensable; for which a full knowledge of the characteristics and elements of the indemnity clause is required.Therefore, this article will address the following topics. On the one hand, the primary content and parties subject to the indemnity clause. In addition to addressing the different elements and concepts that compose and affect it. On the other hand, explore the limits and exceptions to its implementation.