Legal Commentary

Residuals Clauses in Mergers & Acquisitions

By davidwanetick

There is an interesting clause that can be used in mergers and acquisitions. This is the residuals clause which basically says the buyer is not responsible for information that it retains in the heads of its newly-acquired employees after returning the tangible information. A well-written residual clause can eliminate litigation over trade secrets pursuant to a corporate combination.

Full post as published by Vertical Pulse on November 04, 2008 (boomark / email).