Definition: A seller's assurance to a purchaser that the goods or services
being purchased are or shall be as represented and, if not, will be
replaced or repaired
Warranties for your goods and services can be either express or
implied. Express warranties are those made in writing or directly
given by you to your customer or client. Examples of express
warranties are "Parts and labor warranted for 90 days on moving
parts."
Implied warranties aren't expressly stated but can be derived
from advertisements and literature. Examples are "You'll never have
to paint again if you use this product" or "Use this rust-free
compound to save time and money." The implication is that no rust
will form on the item and that you'll never have to redo your
project.
From a business owner's point of view, it's important to make
sure that the person writing your advertising or brochures doesn't
inadvertently give a warranty that you can't pay for. Breaches of
warranties usually mean that you have to give the cost of the
product back or at least replace or repair it. This can be very
costly.
And when it comes to a written contract between your business
and a customer, depending on the contract, you almost certainly
will want to include some representation and warranties, and
warranty waivers. There are many variations on warranties depending
on the type of transaction. Typically, warranty waiver language
will waive the following warranties usually implied into sales of
goods under state law:
Merchantability. This warranty means the product will
operate as it's expected to. For example, a toaster will toast
bread.
Fitness for a particular purpose. This warranty means the
item will work for something in particular. For example, if you're
seeking fishing line that holds 1,000 pounds, then the product
information should state that it will hold that amount.
Noninfringement. This kind of warranty relates primarily
to intellectual property matters. Basically, it means that the
items contain only original work or that the creator has obtained
all the necessary licenses so that no third party's rights will be
infringed.
Title. This warranty means the seller has good title to
the item.