What is the common cap amount (as a percentage of purchase price)?
Frequency/market practice: The buyer will ask for 100% but it is possible to negotiate down. It ranges from 10% to 100%.
Does the cap (and other liability limitations) apply to the whole agreement or just warranties (or particular terms)?
Frequency/market practice: Both are seen regularly.
What are the common exceptions to the cap?
Frequency/market practice: Key warranties are often excepted (e.g., title, capitalization and authority). Often tax and specific areas of concern, sometimes with specific higher caps. Separate caps can be negotiated.
Is a deductible or basket common?
Frequency/market practice: Sometimes. It is becoming more accepted in the market.
Is a de minimis common?
Frequency/market practice: Sometimes. It is becoming more accepted in the market.
How long does seller liability survive?
Frequency/market practice: A general survival of 18-24 months is common. Tax is commonly longer than general warranties.