1) List three provisions in a contract that would be material, and two that would not be.
2) Blair Co.’s top officers asked an investment bank to find a buyer for the company. The bank sent an engagement letter to Blair with the following language:
If, within 24 months after the termination of this agreement, Blair is bought by anyone with whom Bank has had substantial discussions about such a sale, Blair must pay Bank its full fee.
Is there any problem with the drafting of this provision? What could be done to clarify the language?
