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The legal mechanics

Reps and warranties

The factual promises sellers make about a business, and what happens if one turns out false.

Step 1 of 6

Meet the players

When a company is sold, the price isn't just a number. It's based on a long list of factual promises the seller makes about the business.

This is a simplified illustration of how warranties typically work, not legal advice or a description of any specific transaction. For real examples, read the daily issues.