What are warranties?
A. Warranties are contractually agreed penalties that apply to a sale where money could be recovered as damages. If for example certain pre-agreed or pre-stated performance, financial or legal parameters are not met. The number of warranties will vary from transaction to transaction. Standard warranties are usually associated with TAX and VAT. Often warranties are applied in the place of technical due-diligence and understanding. We believe this practice to be incorrect and can lead to distrust and bad feeling Business Synergies strives to reduce need for warranties by encouraging each party to pre-disclose, understand and to mitigate any issues so that a warranty becomes unecessary.
