Selling a Business Attorney in Hackensack, New Jersey

Representations in a Contract of Sale

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A representation is where the seller is giving a picture, painting a picture of its business. So it ties in all that due diligence that the buyer seen into the contract. A lot of times a client will tell me, a seller, the buyer will tell me oh, I know already. And I’m like well, everything they’ve told you and shown you is meaningless unless we get it into the contract. So a representation is a statement of fact, here are employees, here are contracts, here are the litigations against us. So that’s the representations paint the picture of what exists to the extent it’s not true and the business is worth more or the buyer has damages then there’s a claim.

New Jersey business transactions attorney, Harold I. Steinbach, explains how the seller is painting a picture of its business with representations and ties in due diligence.

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