Overview

A recent case has shown that failing to disclose crucial information in the lead up to a company sale, leaving the buyer to rely on inaccurate sales forecasts in making its decision to purchase the company, can constitute fraudulent misrepresentation.

The case Erlson Precision Holdings Limited v Hampson Industries plc also highlights the drastic measures the courts are prepared to award. The court granted the rescission of the entire sale contract itself, enabling the company to be returned back to the seller and the repayment of all sale proceeds.

In this briefing, Shoosmiths look at the case's background, the consequences of failing to disclose and what businesses can learn from the case.

Click 'View Briefing' to read on.