Legal Due Diligence · glossary
A limit on warranty claims in the SPA: the claims together must reach a set total before any can be paid. With disclosure and the cap, it weakens any claim for a known problem. So a known problem is covered by a specific indemnity, which usually sits outside the basket. Chapter 8
Explained in Chapter 8, Regulatory, Compliance and AML, of Legal Due Diligence.
The main page for this term is Basket, in M&A Foundations.
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