1887

n South African Journal of Economic and Management Sciences - Making sense of the disclosure of latent defects in financial statements and company acquisition contracts : law and economics

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Abstract

This paper analyses the statement made by the South African Appeal Court Judge Holmes in the (1973) case and, using economic and unique South African legal principles, it examines the true legal nature of a contract to regulate company acquisitions.1 Two solutions are offered for financial managers in South Africa: (1) the contract to regulate company acquisitions is a forward contract and (2) the difficulty in identifying latent defects should not be grounds for reducing the price paid for a company or enterprise in the South African legal system.

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/content/ecoman/13/1/EJC31305
2010-03-01
2016-12-08
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