TABLE OF CONTENTS The most useful means of creating an environmental picture of the vendor company or business is to make appropriate pre-contact enquiries in the form of an environmental questionnaire (see the example of a simple US questionnaire in the APPENDIX). This serves as a prompt to identify and perhaps assess the existence of circumstances which, either individually or in conjunction with other similar or linked claims, could lead to environmental liability. The acquisition or disposal of corporate assets requires a rigorous assessment of the vendor company's environmental position. Information needs to be gathered to enable the purchaser to decide on the environmental warranties and indemnities that may be required.
The environmental questionnaire would normally contain a full set of specific questions, answers to which may give an indication as to whether the land or adjoining property is contaminated or not and whether other environmental concerns are present. The following types of environmental liabilities should, for example, be disclosed in response to the questionnaire:
liabilities which are historical, existing or potential;
liabilities which concern civil matters such as damages, injunctions or personal injury claims relating to industrial diseases;
compliance/regulatory matters including liabilities which concern criminal matters such as fines, prosecutions or enforcement action;
liabilities which reveal capital or revenue cost, whether of a compulsory or voluntary nature.
In addition, the environmental questionnaire will be directed at specific sites which are to be acquired and in this regard the following matters should, for example, be covered:
liabilities relating to...
