Project finance—representations and warranties
Published by a LexisNexis Banking & Finance expert
Practice notesProject finance—representations and warranties
Published by a LexisNexis Banking & Finance expert
Practice notesMany of the usual Representations and warranties for a typical syndicated Loan facility will also be applicable to a project finance Transaction. For information about those representations and warranties, including what representations and warranties are and why they are used, see Practice Note: Representations and warranties.
This Practice Note examines the types of additional representations and warranties which may apply in a project finance transaction.
Purpose of representations and warranties in a project finance transaction
Under general contract law, representations and warranties differ in meaning:
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representations are pre-contractual statements of fact made by a party to a contract which induce another party to enter the contract—if a Representation is incorrect or misleading, it may give rise to a claim for misrepresentation under general law, the remedy for which will be rescission and/or damages depending on the type of misrepresentation
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warranties are terms of the contract, breach of which will give the innocent party a right to sue for damages but not rescind the contract
For more information, see Practice Note: Representations
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