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ARTICLE · 07 DECEMBER 2004

Nothing to Hide: Disclosures Against Warranties

Clayton Utz
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Warranty disclosure is a balancing act, and courts are not backward in finding faults in the way information has been disclosed. Haggling about warranties is a standard feature in sale of shares/business negotiations. </P> <P>Sellers often try to mitigate the effect of warranties by making disclosures. The sale agreement usually contains a clause saying that the buyer cannot claim that a warranty is false, misleading or breached if the relevant fact, matter or circumstance has been disclosed by

AustraliaFinance and Banking
Andrew Walker
Andrew Walker
Samuel Cottell
Samuel Cottell
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Key Point

  • Warranty disclosure is a balancing act, and courts are not backward in finding faults in the way information has been disclosed.
"But you found the notice, didn't you?"
"Yes," said Arthur, "yes I did. It was on display in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying `Beware of The Leopard'.'" (The Hitchhiker's Guide To The Galaxy)

Haggling about warranties is a standard feature in sale of shares/business negotiations.

Sellers often try to mitigate the effect of warranties by making disclosures. The sale agreement usually contains a clause saying that the buyer cannot claim that a warranty is false, misleading or breached if the relevant fact, matter or circumstance has been disclosed by the seller.

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