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Warranty Claims
Warranty Claims Arising Out of Breach of a Share Purchase Agreement (SPA) or Asset Purchase Agreement (APA)
When a business is sold, the Share Purchase Agreement (SPA) or Asset Purchase Agreement (APA) typically includes warranties—assurances given by the sellers about various aspects of the business. These warranties are relied upon by buyers in completing the transaction. While most warranties are straightforward and unproblematic, disputes can arise if buyers believe that these assurances were inaccurate or breached after the sale. This can lead to claims for breach of warranty, requiring both buyers and sellers to navigate complex legal challenges.