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Rajah Lehal

Indemnity May Be Limited to a Limited Period of Time

June 25, 2015

Links from this article: Read the article here.

  • When drafting an indemnity clause in an asset purchase agreement, parties may wish to limit the time period in which the indemnity clause is to be effective. (This is referred to as the indemnification period.)

This report discusses assets that had been sold (through an asset purchase agreement) to the purchaser on a servicing released basis.The vendor in this case indemnified the purchaser against the breach of certain representations and warranties for a set period of time.

Read the article here.Take away:

  • Parties entering into an asset purchase agreement should consider inserting an indemnification period in their indemnity clause
Asset Purchase Agreement
Indemnity
Commercial Activities

Written by Rajah. Rajah Lehal is Founder and CEO of Clausehound.com. Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.