warranties
Definition
A warranty is a promise or guarantee that something is true or that a product or service will perform as described. When you sell a product, you are legally making certain promises to your customer, and if those promises turn out to be false, the customer can hold you responsible.
Example
If you sell a piece of equipment and promise it will last five years under normal use, that promise is a warranty, and your customer could sue you if the equipment breaks down after six months.
Watch Out
Warranties can be created accidentally through your sales pitches or marketing materials even when you never intended to make a formal guarantee, so be careful about the claims you make when describing your products or services.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.