Legal Due Diligence · glossary
The seller's statements in the SPA that facts about the company are true. The buyer can claim if one is false, but only after the deal, within caps and time limits, and not for matters fairly disclosed. So warranties never replace looking. Chapter 1 · Chapter 12
Explained in Chapter 1, What Due Diligence Is For, of Legal Due Diligence.
The main page for this term is Warranty, in M&A Foundations.
The SPA holds two kinds of promise. Warranties are the seller's statements that facts about the company are true, and the buyer can claim if one is false. Indemnities are promises to pay for a named problem, euro for euro, if it ever costs the buyer money.Read Chapter 1, What Due Diligence Is For →
Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.Chapter 1 of Legal Due Diligence and this glossary are free to read; the rest of the edition is in the Library, at €12 a month or €79 for a Year Pass.
Related terms
Where this term lives
This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Legal Due Diligence → · All terms A–Z →