A “Basket” in a merger or acquisition is generally a minimum amount of damages, almost a deductible that must be reached, in order for an indemnified party to have a claim against the indemnifying party. A basked can help protect one party from making small claims or “nickel and diming” the other party and be beneficial for the agreement.
If you have any questions about a business transaction, please get in touch with business lawyers at the McGuire Law Firm for a free consultation.