Dealing With a Breach of Warranties in a Share Purchase Agreement

We were instructed to represent the purchasers of a business who were being pursued for deferred consideration payments pursuant to a Share Purchase Agreement.

The purchasers’ position was that the sellers were in breach of various warranties in the Share Purchase Agreement and that misrepresentations had been made about the business as part of the pre-sale negotiations. We were able to lodge a vigorous Defence and Counterclaim.

Ultimately, a settlement was achieved whereby our clients were released from the obligation to pay deferred consideration.