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Questions and Answers
What is the purpose of 'representations and warranties' in a Share Purchase Agreement?
What is the purpose of 'representations and warranties' in a Share Purchase Agreement?
- To transfer ownership of the shares from seller to buyer.
- To allocate risks by making the seller liable for undisclosed events. (correct)
- To provide a right for consumers to return goods bought online.
- To educate buyers about the competitors' products.
What problem do 'representations and warranties' aim to solve in a Share Purchase Agreement?
What problem do 'representations and warranties' aim to solve in a Share Purchase Agreement?
- Hidden defects in the products being sold.
- Fraudulent misrepresentation by buyers.
- Non-disclosure of material information by the seller.
- Information asymmetries regarding the company's hidden liabilities. (correct)
In a Share Purchase Agreement, what is the function of 'representations and warranties' concerning unknown liabilities?
In a Share Purchase Agreement, what is the function of 'representations and warranties' concerning unknown liabilities?
- To transfer ownership of the shares.
- To educate consumers about flawed products.
- To restrict competition through cartels.
- To hold the seller responsible unless certain events are disclosed. (correct)
What aspect of the Share Purchase Agreement makes it a heavily negotiated document?
What aspect of the Share Purchase Agreement makes it a heavily negotiated document?
What role do clauses like 'representations and warranties' play in many other contracts besides Share Purchase Agreements?
What role do clauses like 'representations and warranties' play in many other contracts besides Share Purchase Agreements?
Why are 'representations and warranties' essential in contracts like Share Purchase Agreements?
Why are 'representations and warranties' essential in contracts like Share Purchase Agreements?
What is the main difference between liquidated damages and penalty clauses?
What is the main difference between liquidated damages and penalty clauses?
Under what circumstances can penalty clauses be reduced in Belgium?
Under what circumstances can penalty clauses be reduced in Belgium?
Why are penalty clauses often prohibited or unenforceable in contracts?
Why are penalty clauses often prohibited or unenforceable in contracts?
In contract law, what is the purpose of liquidated damages?
In contract law, what is the purpose of liquidated damages?
Which legal principle supports the use of liquidated damages in contracts?
Which legal principle supports the use of liquidated damages in contracts?
What is the purpose of contracts according to the text?
What is the purpose of contracts according to the text?
How does contract law help reduce transaction costs?
How does contract law help reduce transaction costs?
In contract law, what do representations and warranties typically relate to?
In contract law, what do representations and warranties typically relate to?
What does an earnout provision in a contract usually refer to?
What does an earnout provision in a contract usually refer to?
When considering a locked box mechanism, what aspect of a transaction is typically fixed?
When considering a locked box mechanism, what aspect of a transaction is typically fixed?
Which type of agreement is primarily used in the acquisition of shares in a company?
Which type of agreement is primarily used in the acquisition of shares in a company?
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