Docklands Solicitor

Latest legal news from Docklands Solicitors, Kaslers Solicitors LLP.

Saturday, 22 January 2011


Warranties on buying a company

Buyers need to take a warranty that the year-end accounts show a true and fair view of the assets and liabilities of the company; a further warranty that the management accounts since the last year-end accounts fairly reflect the financial position and are not materially misleading and, most importantly, that the company liabilities do not exceed a certain amount

The Warranties should be absolute and not be "So far as the Seller is aware…"

In a 2010 case, a supplier had rendered late invoices after completion of the sale of the company in respect of charges arising before sale. It was held that the company did not know about that liability nor could it reasonably have discovered it. The two accounts warranties did not protect the buyer. He should have insisted upon the liability warranty as well


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Call Michael Breeze on 07900 195 195 or call 0845 270 2511 to if you need legal advise about any of these issues

Kaslers Solicitors LLP is a limited liability partnership registered in England under LLP no. OC310653; authorised and regulated by the Solicitors Regulation Authority under reg no 408936; governed by professional rules set out in the Code of Conduct click here to visit and has its registered office / main trading address at Suite 3, 10 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU - tel: +44 (0)845 270 2511; fax: +44 (0)845 270 2513; DX 92863 West Malling.
The LLP Members are Michael D Breeze LL.B (Hons) (SRA reg no 110184) and Simon McCree Scott LL.B (Hons) (SRA reg no 298202).