Frequency/market practice: Caps for fundamental, business and tax warranties are often separate. The cap for fundamental warranties can range from 50 to 100% of the purchase price, while the cap for tax and business warranties tends to be lower. There is a shift towards a lower cap for business warranties.
Frequency/market practice: Both are seen regularly.
Frequency/market practice: Key warranties are often excepted (e.g., title, capitalization, authority). Tax and specific areas of concern are also often excepted, sometimes with specific higher caps. Separate caps can be negotiated.
Frequency/market practice: This is commonly one to three years for breach of business warranties. Breach of tax warranties tends to survive for longer periods — negotiations start at 10 years but often end up at around five years.