A buyer of a business may take the view that the business that it has bought is not the business it thought that it was going to get.
Sellers usually provide warranties in sale and purchase agreements about the condition of the businesses that they are selling. Where a seller makes warranties that are incorrect, a buyer can make a claim against the seller for damages for breach of warranty to put it in the position it would have been in had the warranties been true.
A buyer may believe that the seller has been untruthful about certain facts relating to the business to induce the buyer into buying it for more than it was worth. In such circumstances, the buyer can make a claim against they seller for fraudulent misrepresentation for:
- rescission (to retrospectively cancel the sale and purchase agreement); or
- damages to put the buyer in the position it would have been in had the fraudulent misrepresentation not been made (usually the price paid and other consequential losses) - damages can be claimed from the seller and personally from the individuals who made the representations.
We can assist in acting for either buyers or sellers in bringing or defending claims. We can help in securing evidence by working closely with trusted forensic computer experts. We can also help in calculating damages by working closely with trusted forensic accountancy experts.
Once we have assessed your case, we will be able to design a strategy for you to obtain a resolution to your dispute. We will aim to achieve a quick resolution without the cost, disruption and risk of court proceedings. If this is not possible, we will explain the court process, the costs likely to be incurred, the risks involved and the tools available to you to put pressure on your opponent to settle the claim without the need for trial (see link on RISKS below).