The MAE Clause, Mrs. Palsgraf and Events “Arising From or Related To” MAE Exceptions
By EsqSocial Corporation 12/05/21
The COVID-19 pandemic has resulted in renewed focus on Material Adverse Effect (“MAE”) clauses in public and private acquisition agreements. That focus, by both the courts and academic scholarship, has raised questions about how these ubiquitous and seemingly standardized provisions actually work. In particular, recent scholarship has raised questions about whether the various MAE exceptions found in an MAE clause follow a Newtonian determinism or something more akin to chaos theory. Simply put,...
By: Weil, Gotshal & Manges LLP