| Commentary

135.2 Generic and specific disclosures

| Commentary

135.2 Generic and specific disclosures

The disclosure letter generally contains two types of disclosure:

  1. 135.2.1

        disclosures of a generic type (for example, matters appearing on the records of the target company obtainable from Companies House); and

  2. 135.2.2

        specific disclosures as exceptions to the particular statements contained in the warranties.

In many ways, the specific disclosures are the more significant of the two. The sellers should go through each warranty thoroughly and in detail, in order to insert the appropriate disclosures in the disclosure letter, that is, revealing those matters which render the statements contained in the warranties inaccurate or incorrect. The

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