Okuzeka
Contract & Commercial Law vocabulary · Contract Terms & Clauses

Representation

Meaning in contract & commercial law, with examples

/ˌreprɪzenˈteɪʃn/nounCommon term

In contract & commercial law, representation means: A statement of fact made by one party, before or when the contract is signed, that encourages the other party to enter into it.

In Turkish: beyan, açıklama

How it is used

Mostly used in the phrase 'representations and warranties'. If a representation turns out to be false, the other party may have a claim for misrepresentation, which can allow rescission as well as damages. The verb is 'represent': 'The Seller represents that…'.

Example sentences

  1. The seller made a representation that no lawsuits were pending.

  2. Each party relies on the representations set out in Schedule 4.

Common collocations

  • make a representation
  • representations and warranties
  • false representation
  • rely on a representation
  • warrantyA promise in a contract that a fact is true or that goods or services meet a certain standard; if it proves wrong, the other party can usually claim damages.
  • misrepresentationA false statement of fact made by one party that persuades the other party to enter into a contract.
  • due diligenceA detailed investigation of a company's legal, financial and commercial position, carried out before buying it, investing in it or signing a major contract with it.
  • share purchase agreementThe main contract in a company acquisition, under which the seller transfers shares in the target company to the buyer for an agreed price.

More terms: Contract Terms & Clauses

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not legal advice.