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THIS ARTICLE WAS ORIGINALLY PUBLISHED IN THE SEPTEMBER QUARTER EDITION OF THE CHAMBER OF COMMERCE MAGAZINE
In business and company sales, Warranties and Indemnities are ways of reallocating risk between sellers and buyers.
“Caveat Emptor” (“buyer beware”) in English law means that generally buyers lack protection.
Buyers may seek warranty and indemnity protection while sellers may attempt to protect themselves by refusing to give certain warranties and indemnities, restricting scope, limiting potential claims or by disclosing against warranties.
Difference between warranties and indemnities:
Warranties protect against the unknown and indemnities allocate risk in respect of known liabilities.
Jonathan Abrams is a Corporate and Media Law Partner at Gregory Abrams Davidson Solicitors. Contact Jonathan about Fixed Fee Mergers and Acquisitions legal services at [email protected] or call 0808 164 9938
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Gregory Abrams Davidson Solicitors and GAD Commercial are trading names of National Law Partners Limited, registered in England and Wales under number 08312439 and are Authorised and Regulated by the Solicitors Regulation Authority, under number 646548. Gregory Abrams Davidson Solicitors registered office: 20-24 Mathew Street, Liverpool, L2 6RE. VAT Registration Number: 290 6677 68.