Contract Glossary
Warranty
Definition
A warranty is a promise that something works, meets certain standards, or is free from defects. Express warranties are spelled out in the contract. Implied warranties exist by law even if nobody writes them down, unless the contract specifically disclaims them.
In Practice
You hire a developer to build custom software. The contract includes a 90-day warranty: any bugs reported within 90 days of delivery get fixed at no extra cost. After the warranty period, bug fixes are billed at $150/hour. Without this warranty, you'd have to pay for fixes from day one. But check the fine print, many contracts include an 'AS IS' disclaimer that eliminates implied warranties, meaning the developer makes no promises about the software beyond what's explicitly stated.
Example Clause
The Service Provider warrants that (a) the Services shall be performed in a professional and workmanlike manner consistent with generally accepted industry standards, (b) the deliverables shall conform to the specifications set forth in the applicable Statement of Work, and (c) the Services shall not infringe upon any third party's intellectual property rights. This warranty shall remain in effect for ninety (90) days following delivery.
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