Materiality Scrape

A Materiality Scrape Scrape is a provision (common in M&A) that disregards materiality qualifiers in representations and warranties for purposes of determining whether a breach occurred and/or calculating damages, often with negotiated exceptions. By applying a Materiality Scrape, buyers seek to broaden indemnification coverage, and sellers often limit the Materiality Scrape through baskets, caps, and specific carve-outs.