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Representations and Warranties

Representations and Warranties are a set of statements made by one party in a contract to assure the other party that certain facts or conditions are true and accurate. In a contract, the seller or the target company will typically make representations and warranties about various aspects of the business, such as its financial condition, legal compliance, ownership of assets, and intellectual property rights.

These statements are usually included in the contract to provide the buyer with some level of protection in case any of the representations and warranties turn out to be untrue. If a representation or warranty is breached, the buyer may have a right to terminate the contract, seek damages or other remedies. The scope of representations and warranties can vary depending on the nature of the transaction and the parties involved.