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ARTICLE · 01 NOVEMBER 2010

"Compliance with Laws" - Representation and Warranty in Large System Procurement Agreements

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All large-scale IT system procurement or implementation or business-as-usual contract documents include terms and conditions which are representations or warranties made by one party to the benefit of the other.

CanadaMedia, Telecoms, IT, Entertainment
Bennett Jones LLP
Bennett Jones LLP
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Published in the Third Quarter (November 2010) issue of HCM&C.

All large-scale IT system procurement or implementation or business-as-usual contract documents include terms and conditions which are representations or warranties made by one party to the benefit of the other. When a representation or warranty is breached by the party who made or makes it, legal consequences typically follow, among which might be: a problem report is filed, dispute resolution mechanisms are engaged, mediation or arbitration may be triggered, work may slow or stop, pricing may become subject to change, the contract itself may be subject to early termination, either in whole or in part, and the breaching party may be caused to indemnity or make good any damage to the other party or to third parties who are not part of the contract but are affected.

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