Section 1040 Clause Samples
Section 1040 establishes the rules and procedures for the exchange of property, particularly in cases where property is transferred in connection with certain corporate or partnership transactions. In practice, this clause outlines how the basis and recognition of gain or loss are determined when property is exchanged, often involving scenarios such as mergers, consolidations, or other reorganizations. Its core function is to provide clarity and consistency in tax treatment for these exchanges, ensuring that parties understand their tax obligations and preventing unintended tax consequences.
Section 1040. Quality and Quantity of Timber. STATE makes no guarantee or warranty to PURCHASER as to the quality or quantity of the Designated Timber. PURCHASER shall be liable to STATE for the Total Purchase Price set forth in Section 1710, "Purchase Price," or 1740, "Log Prices," even if the quantity or quality of Designated Timber actually cut, removed, or designated for taking is more or less than that estimated by STATE to be available for harvesting on the Timber Sale Area. Further, STATE makes no representation, warranty, or guarantee of the accuracy of any information either provided by STATE or made available by STATE under the Public Records Law with respect to this Contract. PURCHASER agrees to bear exclusive responsibility for, and to accept all risks associated with, the actual conditions on the Areas of Operations and PURCHASER's computation of its bid for this Contract.