Terms to Know: (Express) Warranty

Express warranties are direct claims a seller makes to get the buyer to buy goods or services. They are written in a contract. They look like this:

• The software will perform substantially in accordance with the specifications for a period of 90 days from installation.

• Consultant warrants that the Services and/or deliverables to be provided herein will be performed in a good and workmanlike manner and consistent with generally accepted industry standards.

• The widget will be free of manufacturing defects.

The warranty states the standard to which the goods or services will perform (be performed), and helps the business manage its risk. As you can see the warranty for products looks very different from the warranty for services. That is why it is important to get a contract written for your business.