The enforceability of material adverse change clauses (“MAC clauses”) in commercial contracts is an area which has come under increased scrutiny in the wake of the Covid-19 pandemic.

In this episode, litigation counsel Helen Biggin, litigation consultant Peter Watson and structured asset finance senior associate Chris Mitchell discuss the scope of MAC clauses, what clients need to consider when drafting or seeking to rely upon such clauses in their contracts and the approach taken by the English courts to the interpretation of the MAC clauses.

Cases referred to in the podcast:

Grupo Hotelero Uvasco v Carey Value Added [2013] EWHC 1039 (Comm)

Travelport Ltd v Wex Inc [2020] EWHC 2670 (Comm)

Decura IM Investments v UBS [2015] EWHC 171 (Comm)

Cukurova Finance v Alfa Telecom [2013] UKPC 2