Shrewd sellers often negotiate a break-up clause in an agreement of purchase and sale requiring the buyer to pay the seller an amount at least equal to the seller's cost associated with the transaction.

Question

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This statement is true. A break-up clause is a provision in a contract that specifies the amount of damages that one party will pay to the other in case the deal falls through. A shrewd seller may negotiate a break-up clause that requires the buyer to pay the seller an amount equal to the seller's cost associated with the transaction, which could include legal fees, marketing expenses, and other costs. This clause provides some protection to the seller in case the buyer fails to close the deal and allows the seller to recoup their expenses.

Shrewd Sellers Often Negotiate a Break-Up Clause in an Agreement