Warranties: how far do they extend?

In the recent case of Belfairs Management Ltd v Sutherland, the Court of Appeal examined how far the scope of a warranty may extend.

Invariably, share purchase agreements contain warranties that are used by the buyer to gain assurances about the company he or she is purchasing. The seller must then go through the painstaking process of considering each warranty in detail and make disclosures against the warranties in order to limit its liability to the buyer.

In the above case, Mr and Mrs Sutherland disposed of 60 per cent of their shares in Waveform Solutions (a supplier of communications and information technology solutions) to Belfairs in 2008 for £2m…

If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.

Briefings from Shoosmiths

View more briefings from Shoosmiths

Analysis from The Lawyer

  • Hester: declined bonus worth almost £1m

    Pay checks

    Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future

  • high street 150

    Focus: Alternative business structures - Law and new order

    There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…


2 Colmore Square
38 Colmore Circus Queensway
B4 6BJ

Turnover (£m): 87.00
No. of Lawyers: 373