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Bringing and Defending Claims for Payment of Deferred Considerations
In transactions involving the sale of a business, Share Purchase Agreements (SPA) or Asset Purchase Agreements (APA) often include provisions for deferred consideration. This means part of the purchase price is paid in instalments over time, contingent upon certain conditions or events. While payments typically proceed without issues, disputes can arise if buyers believe that payments should be reduced, withheld, or not made at all. Such disagreements can lead to claims or defences concerning the payment of deferred consideration.