The purchase of a company is normally a particularly sensitive matter for the parties concerned. In many cases, economic considerations dictate that contract negotiations conducted on the purchase of a company are also known to a group of persons extending beyond the direct participants. For this reason, both parties have to rely on the fact that the other party discloses no information on the proposed sale or purchase.
If a party infringes the justified confidentiality interest of the other party, it is also liable from the point of view of cic.
In view of the fact that proof of an infringement is difficult in such a case, the parties are advised to specify liquidated damages by means of appropriate agreements when contract negotiations are commenced.
For further information please contact Dr Erich Michel, Wessing Berenberg-Gossler Zimmermann Lange, Freiherr-Vom-Stein-Strasse 24-26, Frankfurt am Maim 60323, Frankfurt, Germany- Tel: +496 997 1300, Fax: +496 997 130100.
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The Purchase and Sale of Companies in Germany - 4.1.1.2 Pre-Contract - Duties Of
