Material Adverse Change Clause
/ˌmætɪəriəl ædˈvɜːrs tʃeɪndʒ klɔːz/
Definitions
- (n.) A contractual provision allowing a party to withdraw or renegotiate if a significant negative change affects the other party or transaction.
The buyer invoked the material adverse change clause after the target company's revenues dropped sharply.
Forms
- material adverse change clause
- material adverse change clauses
Related terms
See also
Commentary
Material adverse change clauses vary widely in scope; precise drafting is crucial to define what constitutes a triggering event.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.