Events
Duane Morris Partner Lee Potter, Jr. to Speak at The Knowledge Congress' "Avoiding Oral Breach Claims Arising From M&A Discussions" Webcast
October 17, 2011 | Webcast
Duane Morris partner Lee J. Potter, Jr. will be speaking at The Knowledge Congress' webcast on "Avoiding Oral Breach Claims Arising From M&A Discussions," on Monday, October 17, 2011, from 3:00 p.m. to 4:00 p.m. (Eastern time).
M&A negotiators typically assume that, unless and until they sign a definitive acquisition agreement, either side is free to walk away from discussions at any time. Negotiators will often sign a letter of intent in the early stages of discussions specifically stating that the parties are only discussing a possible transaction and that none of them has any obligation to try to close the deal unless they sign a formal transaction agreement. However, a March 2010 case in Georgia demonstrates how easily such an assumption can be upended. This case, Turner Broadcasting System, Inc. v. McDavid, resulted in a damage award of $281 million against Turner Broadcasting System based on its breach of an alleged oral contract formed during the negotiation process. The jury reached this decision even though (i) no definitive agreement was ever signed, and (ii) the parties had signed a letter of intent stating that neither party would be bound unless a definitive agreement was signed. This case serves as a warning to deal practitioners to watch carefully what they say and do during negotiations.
For more information and to register to attend the webcast, please visit The Knowledge Congress website.
