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ARTICLE 2 REPRESENTATIONS Form
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People also ask
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What are representations and warranties in a loan agreement?
The representations and warranties allocate risk between the parties and serve as the foundation for an indemnification claim in case of a bsignNow or inaccuracy. A bsignNow or inaccuracy of a representation or warranty can also provide the other party with a right to terminate or refuse to close the transaction. -
What is an example of representation and warranties?
Definition: A representation is technically the statement of a fact (e.g., the corporation is duly authorized), and a warranty is a promise that a fact will remain true (e.g., seller warrants that the business has operated in compliance with all laws …); however, this distinction has proven unimportant. -
What is the difference between terms and representations?
Representations are statements made during the negotiation process, while terms of contract are the actual provisions included in the final document. It`s important to understand the difference between these two concepts to avoid misunderstandings and legal disputes. -
What are representations and warranties conditions?
The representations and warranties allocate risk between the parties and serve as the foundation for an indemnification claim in case of a bsignNow or inaccuracy. A bsignNow or inaccuracy of a representation or warranty can also provide the other party with a right to terminate or refuse to close the transaction. -
What is the purpose of representation and warranty?
The purpose of the representations and warranties is to disclose information between the parties. What the seller offers in a business contract is more comprehensive because it can include information about stocks, liabilities, assets, and the target companies involved in the transaction. -
What is an example of representation and warranty?
For example, if the seller representations and warrants that the company has only 5 customer contracts, the buyer knows it has only 5 customer contracts to review. Seller representations and warranties are not required by law but are in nearly every purchase agreement. -
What is an example of a warranty in a contract?
Company hereby represents and warrants that any Product sold under this Agreement and any replacement Product (a) is free and clear of any liens, security interests, or encumbrances of any nature; (b) has been designed, manufactured, labeled, packaged, stored, exported, and sold by Company in ance with all ... -
What is a representation in a contract law?
A representation is an assertion as to a fact being true on the date the representation is made. It is given to induce another party to enter into a contract or take some other action. A warranty is a promise of indemnity if the assertion is false.
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