Project finance—representations and warranties

Copyright © 2025 LexisNexis
Published by a LexisNexis Banking & Finance expert
Practice notes
Sustainable Business Toolkit

Project finance—representations and warranties

Copyright © 2025 LexisNexis

Published by a LexisNexis Banking & Finance expert

Practice notes
Sustainable Business Toolkit
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Many 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:

  1. •

    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

  2. •

    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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Jurisdiction(s):
United Kingdom
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Key definition:
Representation definition
What does Representation mean?

A representation is a statement that is not a term of a contract but if turns out to be untrue may still give rise to a remedy, albeit on a restricted basis.

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