HomeBusinessFour cases lawyers for Twitter and Elon Musk will examine as they...

Four cases lawyers for Twitter and Elon Musk will examine as they head to court

SpaceX founder Elon Musk reacts at a post-launch news conference after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed test flight to the International Space Station from the Kennedy Space Center in Cape Canaveral, Florida, U.S., March 2, 2019. 

Mike Blake | Reuters

After Elon Musk said he was terminating his acquisition of Twitter, the social media company sued the billionaire to enforce the transaction and cited a contract provision intended to prevent a party from backing out of a deal.

The clause, known as specific performance, is often used in real estate cases to prevent buyers and sellers from calling off deals without good reason. But it’s also included in corporate merger agreements as a way to force a buyer or seller to close on a deal, barring material breaches such as fraud.

In notifying Twitter on Friday of his plans to end the…

Read more at www.cnbc.com

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