Kyiv, January 31 – Maksym Uslystyi, Partner of ETERNA LAW, conducted a workshop on warranties and indemnities in M&A transactions at the Legal High School.
The speaker emphasized the distinctions between warranties & representations and its ultimate purpose for the contract. “In practice, warranty is one party’s promise in relation to the present state of the target or a promise to make some future actions in favor of the other party or the target. Representation mostly relate to the statement of fact on the target, whereas warranty implies taking certain actions by the promising party”, speaker explained.
One of the key aspects of indemnities in the contract is its enforceability and continuance. The most common approach is bare indemnities, whereby one party indemnifies the other party against the breach of all Representations and Warranties provided by the contract, without detailing on specific.
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