Draft Pro-Buyer SPA Indemnification Section with Annotations
Generate a pro-buyer SPA indemnification section with caps, baskets, survival periods, and clause-by-clause annotations flagging market-standard vs aggressive positions.
The Prompt
Variables (4)
| Variable | Description | Example |
|---|---|---|
| {{amount}} | Purchase Price (USD) | 75000000 |
| {{company_in_industry}} | Target Company and Industry | Acme Logistics Inc., a regional freight brokerage |
| {{state}} | Governing Law State | Delaware |
| {{general_cap_percent}} | General Indemnification Cap (%) | 10 |
Expected Output
A pro-buyer SPA indemnification section with general cap, fundamental rep carve-outs, de minimis, tipping basket, survival periods, and clause-by-clause annotations rating each provision as buyer-favorable, market-standard, or aggressive.
Usage Notes
Use this prompt when drafting the indemnification article of an SPA where the client is the buyer. Always validate market-standard percentages against the latest ABA Private Target M&A Deal Points Study before relying on the annotation. Have a senior associate review fundamental rep scope and any uncapped exposure. Anti-sandbagging provisions vary by state; confirm enforceability under Delaware or New York law.
Originally featured in: AI for M&A Lawyers: Due Diligence, LOI Drafting & Deal Room Automation (2026)
Related Prompts
Draft Pro-Buyer Letter of Intent for Private Acquisition
Generate a complete 6 to 10 page pro-buyer Letter of Intent with earnout structure, exclusivity, MAC clause, and automatic flagging of any clause deviating from market standard.
Generate SPA Disclosure Schedules from Data Room Index
Auto-generate SPA disclosure schedules from a data room index with source-document citations, gap flags, and seller-to-confirm tags in a structured table format.
Anti-Hallucination System Prompt Rules for M&A Legal AI
Lock in system-level anti-hallucination rules so the AI flags uncertainty about legal standards, precedents, or market practice rather than fabricating plausible-sounding answers.
Generate Due Diligence Red Flag Report from Data Room Contracts
Scan data room contracts and produce a structured red flag report with risk-scored matrix, executive summary, missing document list, and recommended seller follow-ups.