SUPREME COURT ─ FINDING SELLER’S RESPONSES TO COVID-19 VIOLATED ORDINARY COURSE COVENANT, DESPITE LACK OF “MAE” ─ UPHOLDS CHANCERY DECISION ALLOWING BUYER TO ABANDON SIGNED TRANSACTION
Robert S. Reder & Erin N. Embrey | 75 Vand. L. Rev. En Banc 133 (2022) |
Disregarding similar measures taken by other industry participants in response to pandemic, Court finds that seller’s failure to obtain buyer’s consent to drastic (albeit reasonable) measures as required by sale agreement violated Ordinary Course Covenant.
AUTHORS:
Robert S. Reder
Erin N. Embrey