The Delaware Court of Chancery's recent decision in WSP v. Versar highlights that courts are willing to enable a buyer to select either indemnity or purchase price adjustment mechanisms, even if the parties did not envision that when negotiating the purchase agreement, says Claire Frost at Arnold & Porter.
By Claire Frost · October 19, 2026, 1:06 PM EDT
Drafters often treat indemnities and purchase price adjustments, or PPA, as separate tools addressing separate problems: the PPA addressing accounting-related discrepancies and changes to a target's business between signing and closing,...
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