| Commentary

120 Standard warranties

| Commentary

120 Standard warranties

The warranties schedule will typically contain a wide variety of statements, covering such matters, but not limited to, the following:

  1. 120.1

        the last audited accounts of the company and its subsidiaries—this begs the question as to whether the target company’s accounts have been audited, which may not be the case for a private closely-held company;

  2. 120.2

        due compliance by the company with all applicable laws including under tax legislation;

  3. 120.3

        the trading position of the company concentrating particularly on events occurring since the period covered by the most recent accounts;

  4. 120.4

        any actual or potential litigation

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