Quantcast
Home / Opinion Digests / Contract / Contract – Asset Purchase Agreement – New York Law – Warranty Claims – Waiver – Tort/Negligence (access required)

Contract – Asset Purchase Agreement – New York Law – Warranty Claims – Waiver – Tort/Negligence (access required)

KLATMW, Inc. v. Electronic Systems Protection, Inc. When the defendant purchased the assets of the plaintiffs' business, the plaintiff-sellers falsely warranted that there had been no material adverse effect on the business since the most recent balance-sheet date. In fact, the sellers had learned that their sales to a major customer would decline. However, there is a genuine issue of fact as to whether the defendant-buyer waived this breach of warranty by continuing with the closing after receiving information about the projected sales decline from the sellers.

Leave a Reply

Your email address will not be published. Required fields are marked *

*