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Warranties Clause

Promises about the quality, condition or legal status of goods, services or facts, with remedies if they prove untrue.

What it is

A warranty is a contractual assurance that something is true or will perform to a stated standard, for example that software is free of known defects or that a seller owns what it sells. Breach of warranty gives rise to a claim for damages, distinct from a mere representation.

Why it matters

Warranties allocate quality and legal-title risk and set the standard the supplier must meet. Clear warranties (and disclaimers) determine who pays when goods or services fall short, and they are central to product liability and acceptance.

How to apply it

  • State each warranty precisely and tie it to an objective standard or specification.
  • Define the remedy: repair, replacement, re-performance or refund, and the time limit.
  • Disclaim all implied warranties not expressly given, where the law allows.
  • Distinguish warranties from representations, which carry different remedies.

Negotiation tips

  • • Buyers should resist a sole-remedy cap that excludes consequential loss for core warranties.
  • • Sellers should keep warranty periods short and remedies limited to repair or replacement.

Common pitfalls

  • • Confusing warranties and representations, which trigger different claims and remedies.
  • • Failing to disclaim implied warranties, leaving wider exposure than intended.

Legal references

Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.

Frequently asked questions

Common questions about this clause.

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