Keys 3, 4, 5 and 6
Representations and warranties, specific indemnities, W&I insurance and the impact of the purchaser’s knowledge on the seller’s liability
Company acquisitions through the purchase of stock are complex transactions that can lead to disputes between purchasers and sellers. In the absence of agreement, these disputes will be settled before a court or an arbitral tribunal.
Based on our litigation and arbitration experience, we outline the 10 main disputed issues and some solutions to prevent them through some “information pills.”
The first pill, on breaching preliminary agreements, is available at Key 1. Preliminary agreements. Breach. The second brochure examines keys 2 and 8, which focus on the price and third-party determination of the price. For more information, see Keys 2 and 8. Price and expert determination.
This document looks at four new important aspects: representations and warranties, specific indemnities, W&I insurance and the impact of the purchaser’s knowledge on the seller’s liability.