The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Mon, 04 May 2026 18:46:31 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png The Long Arm of the MAC – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 The Long Arm of the MAC https://corpgov.law.harvard.edu/2017/07/13/the-long-arm-of-the-mac/?utm_source=rss&utm_medium=rss&utm_campaign=the-long-arm-of-the-mac https://corpgov.law.harvard.edu/2017/07/13/the-long-arm-of-the-mac/#comments Thu, 13 Jul 2017 13:24:59 +0000 https://corpgov.law.harvard.edu/?p=97338?d=20170713092459EDT Posted by Daniel E. Wolf, Kirkland & Ellis LLP, on Thursday, July 13, 2017
Editor's Note:

Daniel E. Wolf is a partner at Kirkland & Ellis LLP. This post is based on a Kirkland & Ellis publication by Mr. Wolf, and is part of the Delaware law series; links to other posts in the series are available here.

Dealmakers have long recognized the implications of a Material Adverse Effect (MAE/MAC) standard in a merger agreement. As the Delaware court noted in the Hexion case, a buyer asserting an MAC condition “faces a heavy burden when it attempts to invoke a material adverse effect clause in order to avoid its [contractual] obligation.”

In a recent Delaware case involving chocolate chip cookies, Chancellor Bouchard extended the reach of the MAC jurisprudence in assessing the termination of a license agreement between Mrs. Fields and Interbake.

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