A submission is a notice of fact or notice issued prior to the conclusion of the contract. If the presentation is erroneous and the purchaser invoked it at the conclusion of the contract, it may be entitled to terminate the contract and enforce the contract and claim damages (see below). Under these conditions, the purchaser would have to prove that the breach of the guarantee is at the heart of the contract (not just a ”guarantee”). The buyer would have to prove that the errors in the accounts were so serious that he could terminate the contract. Representation, as a guarantee, is a factual assertion, but it is made during the negotiation of the contract in order to induce another party to enter into a contract. Whereas before the treaty, the steps are usually taken, they are often repeated and therefore form the basis of a contract. A right to misrepresentation may allow the purchaser to terminate the contract. The effect of the resignation is to allow the parties to argue before the contract is concluded. Guarantees may be entered into the contract, or indicated orally, or may be implied by law or by the usual practices of a particular sector or industry. As we will consider next week, a warranty can work with a warranty.
As noted above, the ICA, which is the legal right of contracts in India, does not define ”representation” and ”guarantee.” In fact, the word guaranteed is not mentioned in the legislation. This raises the obvious question of whether Indian law distinguishes between representations and guarantees in normal contracts. When a party gives a representation, there is a strong conclusion that it has personally verified the facts with respect to the presentation – so each violation bears the indication that it may have lied, even though many representations are made innocently, but by mistake. In the case of a warranty, there is no finding that the seller has verified the facts, except that he believes that the guarantee is correct and that he is prepared to pay compensation if it turns out that this is not the case. A guarantee is a promise that a particular declaration applies at the time of the contract. A breach of the warranty results in an infringement action – the most important remedy is the continuation of damages. To give an example, a contract for the sale of goods can give a guarantee on the condition, age or history of the goods sold. A software supply contract generally ensures that the software is free of hardware defects at the time of delivery.
Second, if there is a breach of the guarantee, the standard legal situation is that it gives the victim the right to claim damages under contract law for all the different financial remedies available, but there will be no right to terminate the contract. On the other hand, it is a violation of a representation that will not only entitle the victim to damages, but will also grant him the right to terminate the contract.