Representations and Warranties

Representations and warranties are statements made by parties in a contract to confirm facts or conditions are true at the time of agreement. They serve as assurances about important aspects, such as legal ownership or financial status. If these statements turn out to be false, the other party may have legal options to address the issue, like compensation or termination of the contract. Essentially, they provide a layer of trust and clarity, ensuring both parties understand and agree on key facts before proceeding with the deal.