REPRESENTATIONS, COVENANTS AND WARRANTIES OF Sample Clauses

The 'Representations, Covenants, and Warranties' clause sets out the factual statements, ongoing promises, and assurances made by one or more parties in a contract. This clause typically requires a party to confirm certain facts are true at the time of signing (representations), to commit to performing or refraining from specific actions during the contract term (covenants), and to guarantee the accuracy of certain information or conditions (warranties). For example, a seller might represent that they have clear title to goods, covenant to maintain insurance, and warrant that products meet specified standards. The core function of this clause is to allocate risk and responsibility by ensuring that parties are legally bound to the truth of their statements and the fulfillment of their promises, thereby reducing uncertainty and potential disputes.