“In the Weeds: Why Arbitration May Be the Key to Preserving Enforcement of Cannabis M&A and VC Contracts”

Brian Koosed, Whitney Smith, Kodey Haddox and Ashley Song of K&L Kates have this article in The National Law Review, in which they discuss a “lingering problem” of courts that “will not enforce a contract between cannabis companies” based on their view that awarding relief under the agreements would endorse violating the federal Controlled Substances Act. The authors explain that a way out of the conundrum is for the parties to contractually provide for arbitration of their disputes, providing a checklist of terms that “a carefully-crafted arbitration agreement and thoughtful selection of which laws govern the contract” will maximize the likelihood of enforceability.

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