For anyone who is thinking of buying/selling a business/company, the following link provides an interesting article covering the requirement to give notice of a potential claim under a SPA to the warrantors (usually the sellers) of the business/company.
The SPA essentially stipulated that unless notice in writing of the claim is given to all the warrantors as soon as possible and in any event prior to the seventh anniversary of the date of the Agreement, the right to claim is lost.
The High Court decided that, whilst notice of the claim was made before the seventh anniversary, it was not made ‘as soon as possible’.
The full article can be read here
The wording in such agreements needs to be considered very carefully before signing.
Contact Richard Jenkins on 024 7698 0613 or Richard@clariclegal.co.uk for further advice or assistance.