Tax Warranties Indemnities - With Precedents Author:John Clark, Tony Ring The purpose of this book is to review and analyze draft warranties and indemnities typically presented by a purchaser to a vendor of a company. It is assumed that in most cases the purchaser will retain drafting responsibility although in an increasing number of cases the vendor is seeking to pre-empt that tradition by drafting a set of agreemen... more »ts for consideration. Most of the chapters - after the introductory pages concerning the nature of indemnities and warranties - have a similar format. Commonly seen draft warranties are outlined, followed by general comments as to their purpose and effect. Specific points with which the vendor and the purchaser should be concerned are then reviewed, with shortcomings in the draft warranties being highlighted. Difficulties which will arise for the vendor and purchaser in accepting or conceding respectively certain warranties are also noted. At the end of each chapter, a set of warranties, redrafted to eliminate the most glaring deficiencies, appears, which may prove helpful as acceptable in an "average" set of circumstances. The authors stress that these revised drafts are illustrative and are based on certain unstated assumptions which are believed to be self-evident to readers of the full text of the chapter. Two new chapters have been included in the second edition. Chapter 15 collects together those warranties which are approaching the end of their useful life but which can reasonably be expected to appear in agreements for the next two years or so. Chapter 16 reminds the reader that tax law is ever-changing and that no agreement will be complete without renewing changes in the law which have recently been effected.« less