Warranty or representation — decision over the £16.75m question

The High Court considered whether express warranties in a share purchase agreement could also be representations and therefore found a £16.75m claim for misrepresentation rather than a £6m claim for breach of contract. In this instance the court decided that the express warranties were not representations. Although this is not new law, it is a reminder for sellers and buyers to ensure that drafting reflects the intended allocation of risk. These principles and tactics apply equally to all commercial contracts.

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