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PLAYBOOK TEMPLATES

Partnership Agreement

A Partnership Agreement defines the rights, duties, and profit-sharing arrangements among business partners. This playbook explores governance, capital contributions, and dispute resolution.

Representations and Warranties

Why This Matters: Well-defined representations prevent post-closing disputes and establish clear risk allocation for potential liabilities.

Negotiation strategy

If you're the Buyer:

Ensure all representations are backed by thorough due diligence. Insist on detailed disclosure schedules to mitigate risks.

If you're the Seller:

Limit the scope of representations to avoid overcommitment. Negotiate shorter survival periods to minimize long-term liability.

Essential elements

1

Organization and Authority

Entity's legal standing and power.
2

Authorization and Enforceability

Agreement's validity and binding nature.
3

No Conflicts

No legal or contractual breaches.

Action framework

ACCEPT

Propose edits if due diligence reveals inconsistencies or if jurisdictional adjustments are needed.

EDIT

Reject if representations are overly broad or unsupported by evidence.

ADD

Add language for specific risks identified during due diligence.

PRO TIP

Always cross-check representations with due diligence findings to ensure accuracy and completeness.

Example clauses

FAVORABLE

Preferred Representations and Warranties

"Each party represents and warrants to the other party that: [Organization and Authority, Authorization and Enforceability, No Conflicts, Compliance with Laws, Litigation]"
NEUTRAL

Disclosure Schedules

"The representations and warranties of each party are subject to the disclosures set forth in the disclosure schedules delivered by each party to the other party concurrently with the execution of this Agreement."
UNFAVORABLE

Survival of Representations and Warranties

"The representations and warranties of the parties contained in this Agreement shall survive the Closing for a period of twelve (12) months."

Fallbacks

High-Risk Projects

In high-risk projects, representations should be more comprehensive, covering additional areas like environmental compliance and cybersecurity.

Cross-Border Transactions

For cross-border deals, ensure representations address international compliance and currency exchange regulations.

Start-Up Acquisitions

In start-up acquisitions, focus on intellectual property representations and the continuity of key personnel.
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