Other Litigation Sales of Services Purchases and Development of Assets Sales of Assets and Businesses Other Transactions We become involved in various other claims and liti- gation as a part of our business.  While we cannot predict the final outcome of claims and litigation that were pending at December 31, 2004, based on information currently available, man- agement believes that the resolution of these claims and litigation will not have a material and negative effect on our consolidated financial position or results of operations. As a regular part of our business, we enter into agree- ments that provide for indemnifications and guarantees to counterparties that may require us to pay for costs and losses incurred in various types of transactions. We cannot reasonably estimate the maximum potential amount we could be required to pay counterparties. While some of the agreements specify a maximum potential exposure, many do not specify a maximum amount or limited period. The amount also depends on the outcome of future events and conditions, which cannot be predicted. Historically, we have not made any significant payments under these indemnifications or guarantees. In transactions involving business dispositions and sales of assets, we may be required to pay counterparties for costs and losses incurred as a result of various events. These could include: Some of the agreements specify a maximum potential exposure of $1.5 billion, but many do not specify  a maximum amount or limited period. No amount  has been accrued in the consolidated balance sheet relating to this type of indemnification or guarantee at December 31, 2004.  As part of other transactions, such as securitization agreements and operating leases, we may be required to pay counterparties for costs and losses incurred as  a result of: In transactions involving sales of services, we may be required to pay counterparties for costs and losses incurred as a result of:  maximum amount or limited period. A total of $18 mil- lion has been accrued in the consolidated balance sheet relating to this type of indemnification or guarantee  at December 31, 2004.  • breaches of representations and warranties • changes in, or in the interpretation of, laws and  regulations (including tax legislation), or  • litigation against the counterparties. • representations and warranties • loss or damages to property • changes in, or in the interpretation of, laws and  regulations (including tax legislation), or • litigation against the counterparties. • breaches of representations and warranties • intellectual property rights infringement • loss or damages to property • environmental liabilities • changes in, or in the interpretation of, laws and  regulations (including tax legislation) • valuation differences • litigation against the counterparties • earn-out guarantees if the disposed business does not meet specific targets • contingent liabilities of a disposed business, or  • reassessments of previous tax filings of the corpora- tion that carries on the business. • breaches of representations and warranties • loss or damages to property • changes in, or in the interpretation of, laws and regulations (including tax legislation), or  • litigation against the counterparties. Some of the agreements specify a maximum potential exposure of $305 million, but many do not specify a maximum amount or limited period. No amount has been accrued in the consolidated balance sheet relating to this type of indemnification or guarantee at Decem- ber 31, 2004. In transactions involving purchases and development of assets, we may be required to pay counterparties for costs and losses incurred as a result of breaches of:  Some of the agreements specify a maximum potential exposure of $2 billion, but many do not specify a  Bell Canada Enterprises  2004 Annual Report 117 Note  25 : Guarantees