Due Diligence & Legal

Disclosure Letter

A schedule listing exceptions to warranties — comprehensive, well-evidenced disclosure is the seller's primary defense against future indemnity claims.

Seller Example

Promoter of a Surat diamond processing unit discloses an ongoing labour tribunal matter in exhaustive detail with supporting documentation, converting what could have been open-ended warranty breach exposure into a capped, specifically-quantified ₹40 Lakh escrow — ring-fencing the rest of the sale proceeds from that risk.