Post by congregatio on Sept 10, 2014 21:45:26 GMT 4
Delaware Amends Statute of Limitations for Breach of Contract Claims
Effective August 1, 2014, Delaware amended the statute of limitations applicable to Delaware contracts. The amendment will be an important factor for M&A transactions governed by Delaware law that seek to extend indemnification claims beyond the statutory limitation period. Prior to the amendment, parties entering into an acquisition agreement governed by Delaware law were limited to a three-year period for indemnification claims under the statute, unless they entered into a contract "under seal." The amendment gives contracting parties the ability to extend the statute of limitations for a specified period of up to 20 years for claims arising out of Delaware contracts, as long as the contract is in writing and involves at least $100,000.
Effective August 1, 2014, Delaware amended the statute of limitations applicable to Delaware contracts. The amendment will be an important factor for M&A transactions governed by Delaware law that seek to extend indemnification claims beyond the statutory limitation period. Prior to the amendment, parties entering into an acquisition agreement governed by Delaware law were limited to a three-year period for indemnification claims under the statute, unless they entered into a contract "under seal." The amendment gives contracting parties the ability to extend the statute of limitations for a specified period of up to 20 years for claims arising out of Delaware contracts, as long as the contract is in writing and involves at least $100,000.