Legal updates: July 2019

In this month’s legal updates, Sophie Brookes, partner at law firm Gateley plc, considers a complex accounts warranty claim in 116 Cardamon, limited liability and veil of incorporation in Hurstwood, and defining 'ordinary and proper course of business' in Akcil

Case: accounts warranties, disclosure and seller limitations

A recent case provided useful commentary on some of the typical warranties found in a share purchase agreement and the application of standard limitations, including disclosures and financial limits, to claims under those warranties.

The facts

In 116 Cardamon Ltd v MacAlister and another [2019] EWHC 1200, 116 Cardamon Ltd (the buyer) bought the entire issued share capital of Motorplus Ltd (the target) from Mr and Mrs MacAlister (the sellers). The target, which was regulated by the Financial Conduct Authority (FCA), ran an insurance business selling insurance policies and provided certain services to underwriters.

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Case: accounts warranties, disclosure and seller limitations

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