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The sale of most businesses will include its database, which is often a key asset in the form of customer lists, sale and purchase ledgers, inventories and know-how.
When considering the sale or purchase of a database, it is important to establish whether the data falls in the scope of the Data Protection Act 2018 (DPA) and, importantly, whether it is compliant.
Any shrewd buyer will seek reassurance by incorporating warranties into the sale agreement, which generally cover the following:
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