26/10/18 Representation and Warranty
A representation is an assertion as to a fact, true on the date the representation is made, that is given to induce another party to enter into a contract (such as a merger agreement, credit agreement or underwriting agreement ). A warranty is a promise of indemnity if the assertion is false. The terms “representation” and “warranty” are often used together in practice.
If a representation is not true it is “inaccurate.” If a warranty is not true it is “breached.”