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10/08/2021

Corporate Arbitration: Disputes arising out of representations and warranties

Gustavo Miró Quesada, partner of the firm and our associates Franchesco Scarafone and Ernesto Mendiola participated in the II International Congress on Corporate Law organized by the IPA, addressing the panel entitled Corporate Arbitration: Disputes arising from Representations and Warranties.

On August 6th, our Corporate area gave a presentation at the IPA on Corporate Arbitration, specifically those disputes related to representations and warranties. In it, we explained the functioning of sandbagging, the scope of representations and warranties and the influence of common law in the application of these figures along with national regulations.

The operation and importance of the indemnity clause or indemnification provision was explained, which regulates the consequences of a breach of reps by agreeing that the seller will hold the buyer harmless in the event of damage. In addition, the legal nature of representations and warranties, which institutions of the civil code are applicable and how this determines the resolution of a dispute in M&A was explained.

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