What does it mean to represent and warrant?
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 does represents mean in a contract?
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.
What does representation mean in contract law?
statement of fact
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.
What are warrants in an agreement?
A warrant is a document attached to a security giving the holder the right to buy more shares of the same security at a certain price on a certain date. Because each warrant is different, the terms in a warrant agreement are vitally important for determining the warrant’s value.
What is the difference between representations and warranties and covenants?
The key difference among these words is temporal – past and present for representations; past, present, but mainly future for warranties; and mainly future for covenants. The remedies for a false representation, breach of a warranty or violation of a covenant also have differed.
What is the difference between certify and warrant?
As verbs the difference between certify and warrant is that certify is to attest to as the truth or meeting a standard while warrant is (obsolete|transitive) to protect, keep safe (from danger).
What are representations?
1 : one (as a picture or symbol) that is a sign or portrayal of something else. 2 : the act of doing something on behalf of another or others : the state of doing something on behalf of another or others (as in a legislative body) representation. noun. rep·re·sen·ta·tion.
Why are representations and warranties important?
The purpose of representations and warranties is to disclose information between the two parties. Those given by the seller in a business contract tend to be more extensive because they could include information about stocks, liabilities, assets, and any target companies involved in the transaction.
What is a mere representation in contract?
mere representation. MERE (SIMPLE) REPRESENTATION. A representation that is not a term of the contract. A mere representation which is untrue is either a misrepresentation, or a mere misrepresentation.
What is warrant Program?
Summary. The best way to set up an equity-based incentive scheme in Swedish startups who can’t use qualified stock options is typically by using warrants, which are a kind of stock options. Basically, the company issues new warrants to employees, who buy the warrants at market value (for tax reasons, see below).
How are warrants exercised?
The easiest way to exercise a warrant is through your broker. When a warrant is exercised, the company issues new shares, increasing the total number of shares outstanding, which has a dilutive effect. Warrants can be bought and sold on the secondary market up until expiry.
What are representations in life insurance?
Representation — a statement made in an application for insurance that the prospective insured represents as being correct to the best of his or her knowledge.
How do warranties differ from representations?
Warranties differ from representations in a sense that warranties form the basis of the contract and create a contractual obligation on the part of the warrantor to ensure what has been warranted are true.
What are warranties and representations?
Representations and warranties are a series of statements inserted into the contract that list the basic facts that inspired each side to agree to the deal. The idea is for one side to put the other side on notice that it is relying on certain facts, both past and present, and that it expects those facts to survive into the future.
What are Reps and warranties?
Reps and warranties is a term used to describe the assertions that a buyer and/or seller makes in a purchase and sale agreement.
What is representation and warranty insurance?
Representation and Warranty Insurance. “Representation & Warranty Insurance” (“R&W Insurance”) is a type of insurance policy purchased in connection with corporate transactions, and covers the indemnification for certain breaches of the representations and warranties in the transaction agreements.
