Glossary · People and paperwork
In short
This happens when one party fails to fulfill their obligations under a legally binding agreement. It can lead to disputes, lawsuits, or financial penalties, impacting the business you're buying.
During due diligence, you must identify any existing or potential breaches of customer, vendor, or employee contracts. A breach could create significant liabilities or disrupt operations post-acquisition. Your attorney will review all key contracts for potential issues before closing.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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