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Warranty as to capacity

Warranty as to capacity

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This precedent has been authored by Dr. Gordon Hughes, Principal, Davies Collison Cave Law.

Introductory note

In order to minimize the prospect of a party asserting that it entered the contract ultra vires or that is prevented from meeting its obligations due to the absence of a licence or other local regulatory requirement, it is common to include a generic warranty as to the capacity of each party to enter into the agreement.