Legal Due Diligence · glossary
A promise to pay for a named problem, euro for euro, if it ever costs the buyer money. The buyer need not prove that any statement was untrue. The entry for specific indemnity gives the Sunrise example. Chapter 1
Explained in Chapter 1, What Due Diligence Is For, of Legal Due Diligence.
The main page for this term is Indemnity, in M&A Foundations.
So a known problem needs a different tool. A specific indemnity is the seller's promise to pay the buyer, euro for euro, for losses from one defined matter. The buyer need not prove any statement untrue, and the indemnity usually sits outside disclosure, the basket and the general cap.Read Chapter 8, Regulatory, Compliance and AML →
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