Warranty and indemnity claims

Warranty and indemnity claims


When agreeing the terms of a contract, certain assurances are given in the form of warranties or indemnities. Commonly found in commercial agreements, it is important that the parties fully understand the implications of these assurances as they are often the subject of litigation.

How we can help


Warranties are statements made about a business by the seller which are (or should be) a true reflection of the facts. The seller is required to disclose any information about known issues or problems so that both parties can allocate and agree levels of risk between them. The buyer then has a means of recourse if a breach of warranty occurs, and the buyer incurs a loss as a result.  

Our advice


As a warranty protects against unforeseen incidents and occurrences, negotiating warranties can take time and can be a source of disagreement between the parties so it is recommended that parties should take expert legal advice on the terms to manage the risk of problems arising early before terms are agreed rather than addressing them down the line.  However, in practice not every contingency can be predicted so there will be circumstances where parties will need legal advice and assistance when a statement made by a contracting party or facts relating to a sale or purchase turn out to be untrue. If the warranty is breached, the claimant is entitled to be put into the position they expected to be in if the warranty had been true.

Our solicitors


An indemnity is a promise made by the seller to reimburse the purchaser in the event that they suffer a loss under certain specific circumstances. Indemnities often deal with issues such as product liability or environmental risk that the buyer cannot be reasonably expected to bear the responsibility for. Tax liabilities, for example, are often dealt with by the seller providing an indemnity, absolving the new purchaser from any responsibility for taxes incurred during the previous ownership. An indemnity allocates risk where there is a known liability.  In the event that a situation arises in which a buyer has indemnity, they are able to seek compensation if a loss is suffered.

If you need advice with regard to contractual indemnities or warranties or you have concerns about a potential breach, our team can help. 

Our team


We have a team of contract law solicitors who fully understand the challenges involved when negotiating warranty and indemnity claims. We will get to know your business and ensure that we have a full understanding of your specific contract issue, so that we can provide you with clear and practical advice. We will guide you through the process of bringing or defending a claim, making sure that you are fully informed and involved throughout. We will act in your best interests to offer practical, bespoke advice and will work to show you the quickest, most efficient route out of your dispute. 


Whatever the size of your business, we can offer you a bespoke service, and we will always aim to settle disputes ethically and as efficiently as possible. To speak to our team regarding warranty and indemnity claims, please call 0333 323 5292 or fill out our enquiry form and we will be in touch.

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