The law does not provide much protection for buyers and sellers in a commercial context (ie in business transactions). There is a well-known principle of 'caveat emptor' (or buyer beware), which states that it is the buyer's obligation to know all of the facts and details of what they are buying.
As a result, buyers would seek to protect themselves by obtaining all of the information about the company and receiving assurances from the seller relating to the assets and liabilities of the target company. Therefore, warranties are very important provisions in most, if not all, Share Purchase Agreements.
Ask a lawyer if you need assistance understanding any warranties contained within this Agreement.