Alina

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

November 09, 2017

This article posted on our partner site Mondaq.com 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.