Obligations binding

Representations and Warranties Anatomy™ →Go uptown {{{2}}} A “typical” Obligations binding clause: Obligations binding. Its obligations under this Agreement are its legal, valid and binding obligations, enforceable according to their terms (subject to general laws affecting creditors’ rights and equitable principles). view template Representations and warranties generally | Representations | Warranties | Covenants | Acknowledgements | Representations in the ISDA | Warranties in the GMSLA | Representations in the GMRA | Waiver by estoppel | AcknowledgementCommon representations: Status | Capacity | Authority | No violation | Consents | Obligations binding | Principal | Understanding | Non-reliance | No representation | Unencumbered owner | No default or potential event of default | No litigation | No fiduciary obligation | Representations and warranties Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

A representation that transgresses the very first rule of representations and warranties, which is that they are meant to be about matters of private fact, known to the representor but not the representee, but about which the representee cares a lot about, and might colour its view of entering the contract in the first place. Since the representee knows these things, and they’re just facts, it can safely make representations about them to the representee to make it feel better..

There are no such matters of private fact here: a contract is either valid and binding on a party or it isn’t; it isn’t the sort of thing that party can conceal from the other one. No; whether a contract is valid and binding is not a question of fact at all: it’s a question of law.

It, therefore, requires an opinion, from one qualified to give such an opinion. The person who can attest to these is a special fellow. A boy wizard. A legal eagle. If you want to know whether your agreement is binding, don’t ask the counterparty; ask legal.

See also

• Obligations Binding representation under the ISDA Master Agreement