What is a Warranty?
In business and various legal negotiations, a warranty is a type of assurance offered by one party another. The warranty, in this agreement, will include certain facts or conditions revolving around a product or service purchased. When the facts or conditions are delivered in a warranty, they act as a guarantee and enforce a legal obligation for the provider. The user or purchaser therefore will subsequently rely on the warranty to guarantee the delivery of the conditions and facts latent in the document.
In essence, a warranty provides a purchaser of a good or service with a full guarantee, that if the service or product does not meet the conditions provided in the warranty, the purchaser will have the legal right to seek some type of remedy or repayment.
Basic Types of Warranties:
A warranty can be attached to a number of products or services; in real estate transactions, for instance, a general warranty deed is a promise that the buyer’s title to a particular place of land will be adequately defended. A limited warranty, in contrast, is a promise that the title will be defended only against a limited set of claims, which include claims that arise from encumbrances executed by the grantor.
Thus, through these basic definitions, it can be observed that a general warrant deed binds the grantor to defend the title of the property against all claims even those which arise from previous owners; while, a limited warranty deed will typically bind the grantor to defend the title against any claims which may arise from when the grantor held the title to the property.
Implied Warranty: This type of warranty typically arises from the general nature of the transaction and the inherent understanding delivered by the buyer. This relationship is held in contrast from the express representations of the seller.
Lifetime Warranty: The lifetime warranty is delivered as a guarantee for the lifetime of an underlying product. The lifetime warranty is not attached to the consumer but the product purchased; if the underlying product has been discontinued and is no longer available for purchase, the warranty will last a limited time. Lifetime warranties are typically attached to consumer products; if the product, for whatever reason, breaks or fails to perform its implied function, the purchaser has the right to seek some form of repayment from the retailer or manufacturer who sold the good.
Second-hand product Warranty: This type of warranty is attached to products that were previously used by a business or consumer. The Second-hand product warranty may be attached to those products that are re-sold; a common good or product that will possess a second-hand product warranty is a used car.
Breach of Warranty:
A warranty is breached when the promise is not fulfilled; when goods or a service are not delivered as expected or labeled in the warranty, the producer or provider is legally responsible to repay the consumer in some form. The seller therefore, must honor the warrant by making a timely refund or replacement to the seller. That being said, each warranty will possess a unique statute of limitations that typically starts upon the date of delivery.