Sober Second Thoughts: Litigating Purchase and Sale Agreements in the Energy Industry

Abstract

This article explores common legal issues that arise in the purchase and sale of energy assets. Legal disputes are frequent because of the complex nature of these transactions. The authors begin by discussing the ambiguities in purchase and sale agreements, and how the courts interpret them. Second, the authors analyze the types of disputes that can arise prior to closing that can compromise or frustrate the finalization of the sale. Third, post-closing disputes relating to the subject-matter of transactions, breaches of representations and warranties, and the mechanics of indemnities are considered. Finally, the authors close by examining other issues which may impact the ability of a party to bring a claim.