Sellers engaged in a stock purchase agreement ought to pay close attention to the purchase and sale section as well as the representations and warranties section of the agreement. The purchase and sale section need to match the terms stipulated on the letter of intent. Differences in terms are likely to have resulted from the buyer’s due diligence, and should have been formally negotiated before to the completion of the stock purchase agreement. The representations and warranties section should also be fully to ensure there are no statements believed to be untrue. Generally, there is potential for legal action if it is discovered that the representations made were untrue. Even once the transaction has been finalized, the purchase price may be adjusted and the buyer may be reimbursed for misrepresentations made.