| Commentary

123.1 General

| Commentary

123 Remedies for breach of warranty

123.1 General

The main purpose of the buyer including warranties in the share sale agreement is to provide himself with a remedy if the target company turns out to be subject to obligations or liabilities which have not been disclosed before exchange of contracts. It is therefore vital that the buyer ensures that breach of one or more of the warranties will give him an effective and adequate remedy. There are two main remedies which the buyer may seek: first of all the right to avoid, or ‘rescind’, the sale agreement and get out

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