# Warranties Clause

Source: https://contracko.com/clause-library/warranties

# 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.

### How Contracko helps

Contracko's AI review identifies warranty clauses across your contracts and flags gaps such as missing remedy definitions or absent disclaimer language. When warranty periods have a fixed end date, Contracko tracks those dates and sends reminders so your team can assess compliance or trigger supplier remedies before the window closes.

## Legal references

- [BW 6:74 Conformity / non-performance Dutch law](https://wetten.overheid.nl/BWBR0005289)
- [BW 6:248 Reasonableness and fairness Dutch law](https://wetten.overheid.nl/BWBR0005289)

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.

## Relevant for

[Software & SaaS](https://contracko.com/industries/software-saas)[Manufacturing](https://contracko.com/industries/manufacturing)[Construction](https://contracko.com/industries/construction-industry)[Engineering & Architecture](https://contracko.com/industries/engineering)[Retail & Wholesale](https://contracko.com/industries/retail-wholesale)

## Related clauses

- [Limitation of Liability Clause](https://contracko.com/clause-library/limitation-of-liability)
- [Indemnification Clause](https://contracko.com/clause-library/indemnification)
- [Service Level Agreement (SLA)](https://contracko.com/clause-library/service-level-agreement)

## Related terms

- [Warranty](https://contracko.com/glossary/warranty)
- [Representation](https://contracko.com/glossary/representation)
- [Breach of contract](https://contracko.com/glossary/breach-of-contract)

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## Frequently asked questions

Common questions about this clause.

- **Q:** What is the difference between a warranty and a representation?
  **A:** A warranty is a promise that gives a damages claim if untrue; a representation is a statement of fact that, if false, may support rescission for misrepresentation.

- **Q:** Can implied warranties be excluded?
  **A:** In B2B contracts often yes, within limits; consumer law restricts disclaimers, and core conformity obligations cannot always be waived.

- **Q:** What remedies does a breach of warranty give in the Netherlands?
  **A:** Typically repair, replacement, re-performance or a price reduction, as defined in the clause; if the clause is silent, statutory damages under BW 6:74 apply.

- **Q:** How long does a warranty period typically last?
  **A:** It varies by product and industry, from 90 days for software to two years or more for construction; the clause should state the period and the trigger (delivery, acceptance or payment).

- **Q:** Can a warranty be sole remedy, preventing any other claim?
  **A:** Yes, if drafted as the exclusive remedy. The supplier then limits exposure to repair or replacement, but courts may override this if the limitation is unreasonably onerous.

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