Template:There are no representations in the gmsla: Difference between revisions

But there ''are'' {{gmslaprov|Warranties}}, and these — except in one arcane and theoretically<ref>But not ''practically'', unless you are some kind of super spod. See ouur disquisition on the differences in the [[representations and warranties]] section.</ref> important way — amount to the same thing.

Precis: A [[representation]] is a pre-contractual statement which induces your entry into a contract but is not part of the contract. One’s remedy for [[misrepresentation]] is thus not [[damages]], but the ''avoidance'' of the contract altogether. You are put in the place you would have been in had you never entered the contract at all.  

A [[warranty]] ''is'' a contractual term, the remedy for breach of which is [[damages]] under the {{t|contract}}.

The potential value of these two remedies may be different, which is why one sees “[[representations and warranties]]”: this gives an innocent party maximum optionality to stick the naughty party with whatever is the worse measure of loss. As to why the {{gmsla}} did away with this option — who can say? Perhaps the nature of stock lending contracts are such that there is no real difference in remedy.