| Commentary

226 Cross indemnities

| Commentary

226 Cross indemnities

The sale agreement will normally provide that the buyer will only be liable for obligations in respect of the business as from the transfer date. However, there may be provision for cross-indemnities as between the seller and the buyer in relation to liabilities before and following the transfer date as appropriate.

As a practical point, the parties should discuss how claims for breach of any warranties given by the seller to his customers in the normal course of his business dealings will be dealt with, if and when such a claim arises1.

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