Disclaimed Warranties & Representations: Promissory Fraud & the Right to Lie

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What your mom taught you about telling the truth is still good advice.  While it may seem to go without saying, at least one judge has reaffirmed your mother’s rule: “it’s not okay to lie,” even if your contract says you don’t have to tell the truth.  In Abry Partners V, L.P. v. F&W Acquisition, LLC, the court had to decide whether a very explicit disclaimer of all warranties and representations would be enforced to limit the liability of a company that had knowingly made false representations to induce the sale of the business to another company . . . read the rest of my article at the Business Bank of Texas website.

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