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Glossary of Terms Beginning with W

Warranties & Indemnities:
These will be sought by the purchaser of shares in a limited company or the purchaser of a business and involve the seller warranting the accuracy of information supplied. Breach of warranty lays the seller open to a claim for damages. If a warranty is also described as an indemnity, the seller agrees to pay for loss caused on a pound for pound basis, without the seller having to actually prove the extent of the damage suffered.

Last updated: 4.46pm, Wednesday 28th April 2010

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