Indemnity Draft

Querist : Anonymous (Querist) 29 June 2011 This query is : Resolved
I AM A STUDENT OF LAW, I CAME ACROSS THIS PROBLEM SO NEED HELP
The Problem:-
The companies A and B are in business with each other. During the course of their business a Company C takes over the company A. Now, the dissolved company A had been in some business transaction with B and the payment was due at the time of dissolution.
The new company C now has to pay it.
MY QUESTION IS THAT COMPANY C HAS TO MAKE AN INDEMNITY BOND ABOUT THE DUE PAYMENT.
WHAT SHOULD BE THE CLAUSES THAT SHOULD BE MENTIONED IN THE DRAFT???

Follow Query

Report Abuse

Advocate. Arunagiri (Expert) 29 June 2011
All the assets and liabilities of A will go to C during the merger. So, the C is liable to pay to B.

abhishek (Expert) 30 June 2011
on merger of company A with C all the assets and liabilities of A will remain effecting and the company C will be responsible for every payment whether payable or receivable on behalf of Company A.

THERE IS NO SET PATTERN OF DRAFTING, THE CONTRACT OF MERGER AS WHOLE BE READ FOR INTERPRETATION.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries