Hey, Give it Back! That Asset Went into the Wrong Pocket!

A wrong pockets clause is a covenant in acquisition agreements used to ensure that funds/receivables, rights or other assets, or liabilities that are discovered or received by one party after closing, which should or would have been or were intended to be transferred to the other party at closing, are so transferred. These assets or liabilities, which can vary from and include cash or cash equivalents, tangible assets like mail, notices, or inventory, intangible assets like intellectual property rights, and liabilities, are described as being in the "wrong pockets." Keep your client’s assets in the right pocket by following the guidance in this Wrong Pockets Clauses template.   

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