The issue considered was whether a buyer’s warranty claim under a share purchase agreement was barred by a contractual limitation of liability that required the buyer to serve notice of the claim, specifying in reasonable detail: (i) the nature of the claim; and (ii) the amount claimed, within 20 business days of becoming aware of the matter.<\/p>\n
The sellers argued that the 20 day period for notifying warranty claims began to run when the buyer became aware of the factual grounds for the claim. The sellers also disputed the validity of the buyer’s notice on the basis that it did not contain sufficient detail concerning the warranty claim.<\/p>\n
The court rejected the sellers’ defence and held that on a proper construction of the clause, “becoming aware of the matter” meant “becoming aware of the claim”. Applying this interpretation, the 20 day period for notifying the claim did not start to run until the buyer became aware there was a proper basis for putting forward a claim and consequently the buyer’s notice was served in time.<\/p>\n
In relation to the contents of the notice, the court considered that “not much was contractually required” by the clause in this regard and that the buyer’s notice did contain sufficient information.<\/p>\n","protected":false},"excerpt":{"rendered":"
The issue considered was whether a buyer’s warranty claim under a share purchase agreement was barred by a contractual limitation of liability that required the buyer to serve notice of the claim, specifying in reasonable detail: (i) the nature of the claim; and (ii) the amount claimed, within 20 business […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1492],"tags":[1572,590,846,1974],"class_list":["post-3990","post","type-post","status-publish","format-standard","hentry","category-corporate","tag-buyers-warranty","tag-corporate","tag-high-court","tag-share-purchase-agreement"],"yoast_head":"\n