Blog Bite: What Are the Consequences of Purchasing Shares Without Due Diligence?

November 09, 2017

This article posted on our partner site explores the Quebec case, Francoeur v. 4417186 Canada Inc., as a cautionary tale against entering into a share purchase agreement sans due diligence or full disclosure. The purchasers were made to bear the risks of having entered into a contract explicitly forbidding due diligence. This case highlights the balancing act between the seller’s desire to closely guard their confidential information against the purchaser’s desire to avoid surprises in a share purchase or M&A transaction.

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Written by Alina.