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M&A: Notarization of Share Purchase Agreements

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The German Supreme Court holds the general view that all side agreements to a share purchase agreement (SPA) require notarization if they are bound to be a part of the agreement in the view of the parties. If this requirement is not fulfilled, all agreements may be void. In a recent verdict, the court reiterates this view but also rules that in exceptional cases the SPA may not be affected by the voidness of a side agreement which has not been notarized. However, the verdict does not change the abovementioned general rules.

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