These are your promises, and they are legally enforceable. Best to explain by examples:

• You own the stock.
• All liabilities have been booked.
• There are no lawsuits that you are aware of.
• The financial statements are prepared according to Generally Accepted Accounting Principles (GAAP – also called accrual accounting). You will have to convert all cash basis accounts to accrual basis.
• There are no regulatory claims against you.

Enough examples, could go on forever. The hard part is not defining these for your business – the buyer will define the list. The hard part is making sure that you properly defined these. You are on the hook for usually three years, and it is our job to make sure you are complete and safe.