By Daniel F. Shay
In the previous entry in this series, we addressed some basics regarding contractual language and discussed the length, or “term,” of a contract, and how a contract may be terminated. Now, we turn to language that may appear to be mere “boilerplate,” but carries greater significance than the many physicians may realize.
Representations & Warranties
When a party “represents and warrants” something in a contract, he or she is promising that the specific statement is true. This promise is treated as an inducement to the other party to enter into the agreement in the first place; if it were not true, the other party would never have agreed to sign. If you represent and warrant something that is later proven to be false, or which you later breach, then the other party may be able to obtain punitive damages against you.
