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.
Seller Example
Promoter of a Rajkot brassware export unit pushes for an anti-sandbagging clause, arguing that any issue the buyer's own diligence team identified and chose to proceed despite should be treated as accepted risk — successfully narrowing the pro-sandbagging language to apply only to matters not specifically flagged in the buyer's own due diligence reports.