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Warranty claims and disputes

Business sale disputes and warranty claims

More and more purchasers of businesses look to receive an after-the-event reduction by making a claim under the warranties in the share sale and purchase agreement (“SPA”).

A warranty is a contractual assurance that a statement made is true.

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.

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Maitland Walker can advise buyers and sellers on warranty claims and disputes.

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.

  • In my experience, Maitland Walker’s key strength lies in representing clients in commercial litigation who may not be familiar with the litigation process and ensuring that it is demystified such that the client can pursue the matter efficiently and effectively.
  • I have worked with Julian Maitland-Walker and Sheree-Ann Virgin. Both appear to me to be excellent practitioners who understand the needs of their client and ensure that the litigation is conducted in a way that meets those needs. They are both extremely pleasant to deal with. They are intelligent and thoughtful individuals with good commercial instincts.
  • Sheree-Ann Virgin is fantastic to work with. She takes a very collaborative approach and is not at all adverse to rolling up her sleeves and getting stuck into the weeds of the case.
  • Julian Maitland-Walker is a seasoned hand who is the perfect partner for both clients and Counsel

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