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De-minimis

De-minimis is a legal term used to refer to a minimum threshold or an amount that is too small or trivial to be considered. In the context of legal agreements, such as mergers and acquisitions or purchase agreements, a de minimis clause or provision sets a threshold for the minimum amount of damages, losses, or claims that will trigger a party’s liability.

For example, a de minimis provision in a purchase agreement may state that the buyer will not be able to claim for any losses or damages that are less than a certain threshold amount. This helps to prevent minor or trivial claims from becoming a burden on the parties involved or clogging up the legal system.