Simulation 2: Due Diligence Findings Call
Objectives
- Present complex findings clearly
- Prioritise risks
- Recommend contractual protections
Explanation
Due diligence on Nosara Verde S.R.L. found: (1) unpaid corporate tax for two years; (2) a pending labour claim by a former caretaker for US$12,000; (3) the lot is 410 m from the high-tide line (outside ZMT); (4) the plan matches the registry. You must present findings by priority and recommend: price retention, specific indemnity and pre-closing conditions.
retention
Part of the price held back to cover risks.
“We propose a retention of US$20,000.”
specific indemnity
An indemnity for an identified risk.
“A specific indemnity covers the labour claim.”
condition to closing
Requirement that must be met before closing.
“Payment of taxes is a condition to closing.”
pending claim
A lawsuit not yet decided.
“There is a pending labour claim.”
to prioritise
To arrange by importance.
“Let me prioritise the findings.”
Flashcards
Match terms and definitions
retention
specific indemnity
condition to closing
pending claim
to prioritise
Complete the sentences
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