Clause guide

Survival of Representations

Whether your representations keep protecting you after closing, or quietly die at closing leaving you with no recourse.

High attentionReps & Warranties
Inkvex checks
  • Whether reps survive closing or merge at closing
  • How long key reps survive
  • Whether fundamental reps survive longer than general reps
  • Whether the survival language is clear and not confused with bring-down
Next move

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Overview

What this clause actually does

A survival clause decides whether the recipient of a representation keeps the benefit of it after closing. If reps survive, you can still bring a claim for a rep that was false when made even if you discover the problem a month after closing. If reps merge or terminate at closing, they stop having effect and you take the deal as is.

Why it matters

Why people get burned by this clause

If reps terminate at closing, you lose your remedy for problems discovered afterward, even problems the other side represented were not there. This is the difference between recourse and as is, where is.

Red flags

What should make you slow down

  • Reps merge or terminate at closing in a deal where post-closing discovery is likely
  • No stated survival period for key reps
  • Survival wording confused with a continuous bring-down, which wrongly turns reps into covenants
  • As is, where is treatment slipped in through a merger provision
Where it appears

Where you usually see it

  • Asset and stock purchase agreements
  • Real estate purchase contracts
  • Any deal that closes after signing
Inkvex review

What the platform checks in the live contract

  • Whether reps survive closing or merge at closing
  • How long key reps survive
  • Whether fundamental reps survive longer than general reps
  • Whether the survival language is clear and not confused with bring-down
Healthier version

What stronger language usually looks like

  • Key reps survive closing for a defined period
  • Fundamental reps survive longer than ordinary reps
  • Survival is stated clearly and separately from bring-down
  • Reps do not silently merge at closing where the buyer needs recourse
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FAQ

Common questions about this clause

What happens if representations do not survive closing?

If reps merge or terminate at closing, you generally cannot sue for a rep that turns out to have been false, even if you discover the problem after closing. You effectively bought as is. This is common in residential real estate but dangerous in a business acquisition.

Is survival the same as a bring-down?

No. Survival keeps a remedy alive after closing for a rep that was false when made. A bring-down makes the rep true again at a later date. Treating survival as a continuous bring-down wrongly converts reps into ongoing covenants.

The bottom line

Survival decides whether your representations still protect you after closing. If they merge at closing you get as is treatment and lose recourse for problems found later. Make sure key and fundamental reps survive for a defined period, and do not confuse survival with bring-down.

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