# Representations and Warranties

*Corporate Finance & M&A — Finicade finance glossary*

Representations and warranties are the seller contractual statements about a business — that the accounts are accurate and the taxes are paid.

Representations and warranties are the seller's contractual statements about the business — that the accounts are accurate, the contracts are valid, the taxes are paid. Breach gives the buyer a claim, usually capped and time-limited, and often secured by an escrow. Warranty and indemnity insurance has largely replaced escrows in larger deals, letting sellers walk away clean while the buyer retains protection.

**Also known as:** reps and warranties, R&W insurance, warranties

**Related terms:** [Due Diligence](https://finicade.com/glossary/due-diligence), [Data Room](https://finicade.com/glossary/data-room), [Material Adverse Change](https://finicade.com/glossary/material-adverse-change), [Escrow](https://finicade.com/glossary/escrow), [Mergers and Acquisitions (M&A)](https://finicade.com/glossary/mergers-and-acquisitions)

Source: https://finicade.com/glossary/representations-and-warranties