Difference Between Representation and Warranty
A representation is an assertion as to a fact, true on the date the representation is made, that is given to induce another party to enter into a contract or take some other action. A warranty is a promise of indemnity if the assertion is false.
What is a representation and warranty?
A representation is an assertion of past or existing fact given by one party to induce another party to enter into an agreement. A warranty is a promise that the assertion of existing fact or future facts are or will be true, along with an implied promise of indemnity if the assertion is false.
Can a warranty also be a representation?
Representations and warranties can quite often be confused, not least because standard drafting of a number of contracts will refer to both in the same clauses. However, it is not always the case that a representation is also a warranty.
What does no representation or warranties mean?
It means that the bank has no idea what the condition of the home is and is stating such. That is why you will get a due diligence period, where you can perform all inspections. The bank is merely declaring that it is not representing the property in any condition, good or bad, and will not make repairs.
What is the difference between a representation and a term?
Contract term: "A contractual [term is] "[a]ny provision forming part of a contract"." Representation: "A representation is a statement of fact which does not amount to a term of the contract but it is one that the maker of the statement does not guarantee its truth.
What are the 4 types of warranties?
Types Of Warranty and their meaning
- Types of Warranty.
- 1) Implied Warranty. a) Warranty of Merchantability. b) Warranty of Fitness For A Particular Purpose. c) Warranty of Title. ...
- 2) Extended Warranty.
- Guaranteed Ability To Repair.
- More Comprehensive Coverage.
- Peace of Mind.
- Savings.
- Increased Resale Value.
What is an example of representation?
Representation is the act of speaking on someone's behalf, or depicting or portraying something. When a lawyer acts on behalf of a client, this is an example of representation. When you make a drawing of your mother that is meant to look like her, this is an example of a representation of your mother.
What is breach of representation?
Breach of a Representation means the falsity or incorrectness of or Breach of any representation or warranty of Seller or Buyer, as applicable, in this Agreement or in any Schedule, certificate or agreement furnished to the other Person pursuant to this Agreement (other than in an Ancillary Agreement) disregarding, ...
What is a representation in law?
Any action or conduct that can be turned into a statement of fact. ... The term representation is used in reference to any express or implied statement made by one of the parties to a contract to another, regarding a particular fact or circumstance that serves to influence the consummation of the deal.
What is a warranty clause?
A warranty clause is a provision in a contract that generally provides a promise specifying that something is true or will happen.
What are representations?
A representation is a statement of fact that induces a party to enter into the contract. The statement, made before or at the time of making the contract, regards a past fact or existing circumstance related to the contract which influences such party to enter the contract.
What is Seller warrant?
More Definitions of Seller Warrants
Seller Warrants means all outstanding warrants to acquire shares of common stock of Seller.
What are representations in a contract?
A representation, like a warranty, is a statement of fact but is one which is made during contractual negotiations in order to induce another party to enter into a contract. While representations are usually made prior to the contract they are often repeated and therefore form the basis of a contract.
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