A recent case has highlighted that a downturn in a developer's fortunes, even where caused by general economic conditions, could prove to be the tipping point for financing being pulled part way through a development. This is due to commonly incorporated, but rarely administered, Material Adverse Change (MAC) clauses. MAC clauses are intended to deal with unforeseen changes in a party's circumstances and are, by their nature, widely drafted. They are also often heavily negotiated.
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