Contractual approaches to environmental liability in asset deals
Contractual approaches to environmental liability in asset deals

Author(s): Vít Švestka, Lukáš Srbecký
Subject(s): Law, Constitution, Jurisprudence, Criminal Law, Civil Law, Law on Economics, Court case, Administrative Law
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: Asset Deal; Deferred payment; Environmental damage; Environmental liability; Indemnities; Representations and Warranties;
Summary/Abstract: The Czech legislation recognises certain types of “environmental liability”, including the obligations from various fields of law – a special obligation to prevent and remedy environmental damage, and administrative, criminal, and civil law liabilities. Unlike in case of share deals, where the liability remains with the acquired company, in case of asset deals the transfer of environmental liability depends on more factors, such as the type of liability and specific circumstances under which the liability originated. Both the seller and the purchaser may aim to minimize the impacts of threatening environmental liability by various contractual instruments. The paper deals with the contractual risk allocation for both parties of an asset deal, including the analysis of the environmental liability under the Czech law, and specific legal instruments of risk allocation, such as indemnifications, representations and warranties, or deferred payment of purchase price.

• Details
• Contents