Financial Ability Representation Clause
(Short Form)

This clause is a representation made by the buyer as to its financial ability to pay the amounts required for the closing of the transaction. This clause contains practical guidance and drafting notes. This short form representation is to be used if the buyer is not relying on third-party financing for any portion of the purchase price or, if the buyer is using third-party financing, the buyer assumes all risk associated with the completion of such financing and represents that it will be able to complete the transaction even if such financing cannot be obtained at the time of closing. As such, this is a pro-seller provision. For a more fulsome representation, see Financial Ability Representation Clause (Long Form).