The Court of Appeal’s decision in The Malthouse Ltd v Rangatira Ltd highlights some of the risks with earn-out arrangements and, in contrast to recent High Court rulings, illustrates a more traditional “black letter law” approach to contractual interpretation.
The decision obliged Rangatira to pay almost $1M more for its 35% stake in Tuatara Brewing – purchased in 2013. It serves as a very expensive reminder that, when negotiating contracts, including M&A deals, clauses must be drafted exactly to match the meaning that your side/client intends. Click here to read more.
