Abstract
The liabhity imposed on the transferor of an industrial site is founded on the duty of disclosure which she owes to the transferee. Environmental law features a growing number of extended liability clauses imposed on the transferor. Such clauses, known as passive guarantees, may firstly be based on a specific document, namely an environmental audit. Secondly, the vendor of an industrial site may also make an undertaking in respect of the legality and conformity of installations formerly operated on that site. Such a guarantee may take several forms, depending on whether the tansferor agrees to reimburse the costs incurred by the transferee when calling on the guarantee or, on the contrary, to pay these sums directly to the transferee' s environmental creditors. It should be emphasized that the passive guarantee mechanism is potentially fraught for the transferor, who should therefore never enter into one without having full knowledge of the exact state of the site.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
