Legal English Dictionary
disclosure letter
nouna letter written to the buyer from the seller concerning a business sale which serves as 1. a source of further specific information for the buyer on the target business (in addition to information gathered during the due diligence process and 2. a way of minimising the seller’s risk of a claim being brought against it for a breach of warranty. The disclosure letter is an opportunity for the seller to disclose to the buyer any matters which qualify or contradict the warranties contained in the sale and purchase agreement.The Company has set forth in Section 2.1(b) of the Company Disclosure Letter a true and complete list of all of the Company's Subsidiaries.