Selling A Business – Representations And Warranties


We don’t like to get too deep into legal issues here – that’s what your lawyer is for. But it helps if you have a basic understanding of the legal issues so that you can talk intelligently with your lawyer about them. So when we find good information about the legal aspects of selling a business – and written by a lawyer – we pass it on. This article is an explanation of the different “Representations and Warranties” that can be part of a business sale. A representation is a promise that the things you say about your business (the way you “represent” your business) during the selling process are true. Most articles written by lawyers aren’t very clear – or instructive – for the business owner. But this one is good and I think it will help you understand some important legal concepts.


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