Where a sale of business agreement contains a warranty as to the accuracy of financial statements, damages for breach are assessed by reference to the rate of return implied by the contract terms (derived from the purchase price and warranted earnings), not by reference to the purchaser's subjective expectations or actual forecasts. The warranty remains enforceable even where the purchaser was aware of inaccuracies through due diligence, because the warranty allocates the risk of inaccuracy to the vendor. A Hungerfords v Walker claim for pre-proceedings interest must be supported by specific evidence; merely seeking interest at the statutory rate is insufficient.
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