In commercial contracts, a warranty is a promise or guarantee made by one party to another regarding the quality, condition, or performance of a product or service. It is a legally binding assurance that the product or service will meet certain specified standards, and that the party providing the warranty will be responsible for any defects or problems that arise.
Key elements of a warranty clause in a commercial contract include:
- Description of the warranty: This should include a clear and concise description of what the warranty covers, as well as any limitations or exclusions that apply.
- Duration of the warranty: This should specify how long the warranty will be in effect, and whether it is limited or unlimited in scope.
- Remedies for breach of warranty: This should set out the remedies available to the buyer in the event that the product or service does not meet the specified standards. Common remedies include repair, replacement, or refund.
- Warranty disclaimer: This should make it clear that any implied warranties are excluded, and that the warranty is the only warranty provided by the seller.
Examples of warranties in commercial contracts include:
- A manufacturer's warranty on a new product, which promises that the product will be free from defects for a certain period of time.
- A service provider's warranty that the services provided will be performed in a professional and workmanlike manner.
- A software developer's warranty that the software will be free from bugs and will perform in accordance with the specifications provided.
How to manage clauses like these effectively?
Check out Clause Library implementation from ContractKen. It has a really smooth, easy to use interface which allows for easy curation, management, tagging, commenting and retrieval (from Microsoft Word) of your clauses.