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How is Material Impact defined in a legal contract?

• Material Impact means a significant and ongoing negative financial or operational effect that is so substantial that if known when this agreement was originally made, a reasonable businessperson would not have proceeded with the transactions contemplated by this Agreement. The party asserting that a Material Impact has happened must provide the evidence.
  Seen in 3 SEC filings.
• Material Impact means a change, event, violation, inaccuracy, or circumstance that is, or is likely to be, severely harmful to the business, assets, capitalization, regulatory environment, financial condition, operations or results of operations of such entity, or the ability of the parties to complete the sale of shares in accordance with the terms within the timeframe the sale would otherwise be completed if such change, event, violation, inaccuracy, circumstance or effect did not happen.
  Seen in 3 SEC filings.
• Material Impact means any incident, effect or result that is substantially unfavorable to a project and its subsidiaries, as a whole, or the ownership of the Acquired Interests.
  Seen in 21 SEC filings.
• Material Impact means a substantial negative impact on the regulatory status or the business sales of a product in an applicable territory.
  Seen in 9 SEC filings.
• Material Impact means anything that a party could reasonably assess would prevent an offer being made to an applicant in accordance with their contract.
  Seen in 6 SEC filings.
• Material Impact means any costs or risks that significantly affect, or would reasonably be expected to have a significant effect on, the debt and financial obligation limit as prescribed under a regulation.
  Seen in 2 SEC filings.
• Material Impact means a negative change that would detrimentally affect the lenders, the collateral as contemplated on the date of agreement, a substantial negative effect on the revenues of the borrower, or a significant delay in obtaining or risk in not obtaining, or in the termination or revocation of a necessary governmental action to complete or operate a system as initially contemplated.
  Seen in 3 SEC filings.

Note: pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Material Impact means a substantial, unfavorable effect on an [organization]'s operations, sales, financial condition, ability to transact, or a regulatory status.

Relevant Contract Types

• Commercial Lease Contracts
• Merger and Acquisitions Agreements
• Franchise Agreements
• Share Purchase Agreements
• Joint Venture Agreements

Relevant Circumstances

• Changes in a business’s financial situation or market conditions.
• Regulatory changes affecting the business.
• Unexpected disruptions in operations.
• Transactions or deals leading to considerable debt.

Relevant Sectors

• Finance
• Real Estate
• Retail
• Information Technology
• Manufacturing

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Genie Definition 2

• Material Impact means significant costs or risks shaping debt and financial obligations beyond a set [financial limit].

Relevant Contract Types

• Contract for Debt Issuance
• Loan Agreements
• Credit Facility Agreements

Relevant Circumstances

• Modification in financial plans or debt arrangements.
• Incurring substantial costs or liabilities.

Relevant Sectors

• Finance
• Banking
• Insurance

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