| Commentary

117 Need for warranties

| Commentary

2: WARRANTIES

117 Need for warranties

It is advisable that a prudent buyer undertakes in-depth due diligence before entering into the share purchase agreement for the acquisition of the company in order to try and ensure that there are no unpleasant surprises awaiting him once the company has been acquired. The purpose of the due diligence process is thus to assist the buyer in making his decision whether to acquire the company and to assist him in negotiating the final terms of that acquisition including the consideration price. The buyer may renegotiate the purchase price if he discovers as a result

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