This article posted on our partner site Mondaq.com explores the Quebec case, Francoeur v. 4417186 Canada Inc., as a cautionary tale against entering into a share purchase agreement sans due diligence or full disclosure.
\nThe purchasers were made to bear the risks of having entered into a contract explicitly forbidding due diligence. This case highlights the balancing act between the seller’s desire to closely guard their confidential information against the purchaser’s desire to avoid surprises in a share purchase or M&A transaction.
","frontmatter":{"title":"Blog Bite: What Are the Consequences of Purchasing Shares Without Due Diligence?","date":"November 09, 2017","description":"This article posted on our partner site Mondaq.com explores the Quebec case, Francoeur v. 4417186 Canada Inc., as a cautionary tale against entering into a share purchase agreement sans due diligence or full disclosure.","author":{"id":"alina@clausehound.com","first":"Alina","last":null,"bio":null,"image":null},"tags":["Letter of Intent","Share Purchase Agreement","Blog Bites","Mondaq"]}}},"pageContext":{"slug":"/5924-2/","previous":{"fields":{"slug":"/blog-bite-how-do-i-conduct-due-diligence-in-a-share-purchase-or-ma/"},"frontmatter":{"title":"Blog Bite: How Do I Conduct Due Diligence in a Share Purchase or M&A?","tags":["Term Sheet","Shareholders Agreement","Letter of Intent","Asset Purchase Agreement","Share Purchase Agreement","Blog Bites","Mondaq","Investor Term Sheet","Memorandum of Understanding"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}},"next":{"fields":{"slug":"/blog-bite-how-can-a-purchaser-deal-with-inaccurate-vendor-representations/"},"frontmatter":{"title":"Blog Bite: How Can a Purchaser Deal with Inaccurate Vendor Representations?","tags":["Letter of Intent","Share Purchase Agreement","Blog Bites","Mondaq"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}}}}}