Due Diligence & Legal
Sandbagging Provision
A clause determining whether a buyer can still claim for a breach of warranty even if the buyer knew about the underlying issue before signing — "pro-sandbagging" preserves the claim, "anti-sandbagging" bars it.
Buyer Example
Buyer acquiring a Rajkot brassware export unit insists on a pro-sandbagging clause, preserving its right to claim against a warranty breach even if diligence had flagged a related risk earlier — ensuring that flagging an issue during diligence doesn't inadvertently waive the buyer's contractual remedy if it later crystallizes into an actual loss.