Warranty
A contractual assurance about a fact or quality, breach of which gives a damages claim.
Definition
A warranty is a binding promise that a stated fact is true or that goods or services meet a defined standard, such as being free of defects or fit for purpose. If the warranty proves false, the other party can claim damages, and sometimes other remedies, even without separate proof of fault. Warranties are distinct from mere representations, which concern statements that induced the contract.
Example
A vendor warrants that the delivered hardware is new and free of defects for 24 months; a defect within that period triggers free repair or replacement.
Why this is a business risk
Warranties are promises, and broken promises are expensive. A broad warranty that the product is "fit for any purpose" can expose a supplier to claims far exceeding the contract price. Buyers who accept narrow warranty carve-outs or short warranty periods may find themselves without recourse when a defect surfaces months later.
How to manage it
- Define exactly what is warranted: the scope, standard (e.g. conforms to specifications), and duration, rather than relying on open-ended language.
- Set out the remedy hierarchy: repair first, then replacement, then refund; this avoids a disproportionate claim for the first minor defect.
- Log and date any warranty claims when they are raised, so the claim is clearly within the warranty period.
- Check whether statutory conformity obligations (BW 7:17) give buyers rights beyond the contractual warranty.
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 term.