When negotiating share purchase contract clauses, legal counsel plays a central role in what is known as representation and guarantees. This preliminary contract is the share purchase agreement and governs the relationship between the buyer and the seller for the period between the signing and the closing. It also covers the additional time. This is therefore a precautionary measure to protect the operation of the company in terms of buying stakes. But there are also other aspects that are no less important, that need to be considered and studied: clauses that must be considered and studied in order for the operation to proceed smoothly to the end and even beyond. A new step allows us to distinguish between representation and «legal» and «business» guarantees. Results: 36. Exactly: 36. Response time: 83 ms.
It is a protection system borrowed from the Anglo-Saxon legal experience that allows the buyer to protect himself against the risk of possible future losses that could occur later after the acquisition of the interest. These losses may be a direct result of the management of the business, different from that presented at the time of purchase. These other details will be the subject of our future discoveries. Compensation, as the name suggests, is a direct compensation system that allows those who purchase to obtain reasonable refreshments in the event of debts that the seller believes should not have been done. In order for the buyer to be protected in the event of non-compliance with the guarantees, special compensation clauses are provided. In the development of the share purchase agreement, the legal counsel`s mission is to protect the interests of the assisted party and, more generally, to ensure the success of the entire transaction. The first, legal, are those that are the object of ownership of the participation and the absence of conflicts or charges on them.