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The invalidity of the testify agreement by third party in sb's favour

On 9 October 2014, the Supreme Court issued a judgment (signature  IV CSK 29/14), which found that the testify agreement by third party in sb's favour is invalid , if neither party is not a related with that third party with obligatory relations. This judgment may be of particular importance for mergers and acquisitions, because the common practice in this type of transaction is the use of eg. in the case of contracts of sale of shares that the company  which sells shares agree that certain third parties will behave in a certain way, as a rule, that third party are the guarantee of such a agreement.

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