Definition
A material adverse change clause is a provision in contracts that allows one party to terminate or renegotiate the agreement if significant negative changes occur that affect the business�s operations or financial situation.
Related Services
Legal, contractual advisory, and risk management services assist businesses in drafting and enforcing MAC clauses in agreements.
Problem and Application
MAC clauses help protect businesses from unforeseen risks but can also create uncertainty or legal challenges if invoked during a deal.
Conclusion
MAC clauses are critical in protecting parties in agreements, ensuring that both sides can mitigate the risks posed by major negative changes in circumstances.
