DOES ANYONE HAVE EXPERIENCE WITH MATERIAL ADVERSE CONDITIONS IN AN LOI?

A counter to our LOI came with a MAC (material adverse conditions) clause which would require us to pay $50k if we backed out of the deal once the LOI is signed unless a material adverse condition was found that could not be remedied within a specific time period.. I understand the intent of the clause but I assume this is much more common in larger deals. Does anyone else have experience with these types of clauses in LOIs?



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