An ‘Anti-Reliance’ Contract Clause May Prevent a Fraud Claim
A recent Delaware Court of Chancery decision illustrates why anti-reliance and exclusive representations contractual language must not be overlooked as meaningless “boilerplate,” writes Brad Reid, Senior Scholar, Dean Institute for Corporate Governance and Integrity, Lipscomb University.
“Additionally, an integration clause means that the written agreement is all that one should rely upon,” he writes in the article. “An individual should not slip into a comfortable feeling of having a personal relationship in a commercial transaction. It is important to recall that modern business involves arms’ length transactions requiring a high degree of due diligence.
The case is Prairie Capital III, L.P. v. Double E Holding Corp.
