Representations and Warranties

Sometimes abbreviated as “reps and warranties”, these refer to provisions found in most business contracts.

Representations are promises by one party that something is true as of a certain date. For example, a seller of a software product might represent that it has the intellectual property rights needed to sell the product. A buyer might represent that it has the necessary funds to complete a purchase.

Warranties are promises that extend to the future. For example, a software vendor might guarantee that it will fix any problems with the software for a certain period of time.