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Buyer Signed Letter of Intent but Had No Duty in Texas to Negotiate in Good Faith

Buyer signs a nonbinding letter of intent to acquire a business. Deal never closes. A Texas intermediate appellate court finds that a prospective buyer owed the seller no duty of good faith and fair dealing. M&A Stories October 11, 2021

Posted in implied duty of good faith and fair dealing, letter of intent, nonbinding Tagged with: ,

Seller Can’t Use LOI to Stop Buyer from Soliciting its Employees

March 12, 2020 Introduction Buyers and privately held sellers generally use letters of intent in business acquisitions. They primarily serve as a statement of the key business terms of the deal and are nonbinding. They also usually contain binding terms

Posted in letter of intent, modification as counteroffer, no solicitation of seller employees, nonbinding Tagged with: ,

Strategic Buyer’s Refusal to Sign APA Authorized by LOI

Introduction The Mississippi high court held that an LOI gave a strategic buyer the right to not sign an APA. The deal The seller started operations as a Mississippi hospice in June of 2007. The founder and owner ran it

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