Can a seller push for a lower cap even on the fundamental representations?

Yes. There is no legal rule requiring fundamental representations to carry a higher, let alone unlimited, indemnity cap — that pattern is common market practice that buyers frequently request, not a default imposed by Ontario law. A seller is free to negotiate for a lower cap on fundamental representations just as they would for general ones, and some sellers, particularly individuals selling a closely held business with limited personal resources, do exactly that.

Buyers typically resist this, since fundamental representations cover matters like clear title to the shares or assets and the seller's authority to sell, where a failure can undermine the entire transaction rather than a single operating issue, and buyers reasonably want stronger protection at that level. Whether a seller succeeds in getting a lower cap depends on negotiating leverage, the buyer's own risk tolerance, and what else is being offered in exchange, such as a larger holdback or a longer survival period covering those specific representations. There is no standard outcome here, so both sides should treat this as a genuinely open point of negotiation rather than a fixed convention.