Accordingly, if such a statement made in the context of an SPA by a seller to a purchaser proves to be untrue, this will constitute a breach of warranty and the purchaser may bring a claim against the seller for breach of contract. The usual remedy available to the purchaser will be an award of damages to put the purchaser in the position that they would have been in had the information as warranted by the seller been true.
Our commercial Litigation & Dispute Resolution team – ranked in the Legal 500 – give practical and strategic advice that understands your priorities. We will guide the dispute to the appropriate resolution whether that is achieved through negotiation, through mediation or some other form of alternative dispute resolution or by a decision of the court if that is necessary.
Buyers are advised to seek advice as soon as they become aware of any circumstances that may give rise to a warranty claim, to assist them in establishing whether they have a claim that is valid worth pursuing and to ensure that the seller is notified of such claim correctly.
Sellers should get advice as soon as they get notice of a claim and before responding to it at all, to consider whether the notice requirements have been complied with and take advice on their potential liability.