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.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.