When reviewing contracts, you’ve probably noticed the phrase “representations and warranties” or “represents and warrants” a dozen or so times and, perhaps, you’ve been curious about how those terms differ, and is it redundant to use both terms? Both representations and warranties are functionally the same, especially in this day and age. In this post we’ll define representations and warranties, and inform you why the traditional use of both terms in your contract may no longer be the best practice.
Understanding the Terms
First, let’s explore the legal definitions and examples of each term:
Black’s Law Dictionary defines “representation” as a statement of fact which was made to induce another to enter into a contract. Typically, representations are statements that a party has…