Representations and warranties
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Representations and warranties Start Comparison
Materiality in representations — how is it quantified (e.g., by a USD amount)?

Frequency/market practice: Fairly common. Materiality qualifiers are commonly seen but they are often not quantified (other than specific warranties, e.g., contract value).

How is knowledge qualified (e.g., specific people, actual/constructive knowledge)?

Frequency/market practice: Knowledge qualifiers are increasingly common. They are often limited to the actual knowledge and due inquiry of a specified list of senior management personnel.

Is a warranty that there is no materially misleading/omitted information common?

Frequency/market practice: Rarely. Sellers are increasingly resisting information warranties.

Is disclosure of the data room common?

Frequency/market practice: This is becoming increasingly common.