isda documents

The 1992 and 2002 isda master agreements (the Master Agreements) are standard form documents produced by the International Swaps and derivatives Association, Inc (ISDA).

In this Practice Note, references to Sections of a Master Agreement and Parts of a Schedule are references to the 2002 ISDA Master Agreement and schedule unless otherwise stated.

For general information about negotiating ISDA Master Agreements, see: Introduction to negotiating ISDA documents.

What are representations?

In Section 3 (Representations) of the Master Agreement, the parties make a number of representations to one another.

Representations are pre-contractual statements of fact made by a party to a contract which induce another party to enter into that contract. If a representation is incorrect or misleading, it may give rise to a claim for misrepresentation under general contract law, the remedy for which will be rescission and/or damages depending on the type of misrepresentation. In addition, most documents used in commercial finance transactions contain specific remedies for misrepresentation (see: Section 3—Representations,