# Warranty

Source: https://contracko.com/glossary/warranty

# 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.

### How Contracko helps

Contracko extracts warranty periods and conditions from contracts so your operations team can quickly see which warranties are live and when they expire. Tracking warranty obligations and claim deadlines as milestones prevents both missed claims and overlooked supplier commitments.

## Legal references

- [BW 7:17 Dutch Civil Code: conformity of goods Dutch law](https://wetten.overheid.nl/BWBR0005290)

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

[Manufacturing](https://contracko.com/industries/manufacturing)[Software & SaaS](https://contracko.com/industries/software-saas)[Electrical Contractors](https://contracko.com/industries/electrical-contractors)[Retail & Wholesale](https://contracko.com/industries/retail-wholesale)

## Related clauses

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

## Related terms

- [Representation](https://contracko.com/glossary/representation)
- [Indemnity](https://contracko.com/glossary/indemnity)
- [Liability](https://contracko.com/glossary/liability)
- [Breach of contract](https://contracko.com/glossary/breach-of-contract)

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## Frequently asked questions

Common questions about this term.

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

- **Q:** Does a warranty require proof of fault?
  **A:** No. A warranty is a strict promise: if the warranted fact turns out to be wrong, the claimant does not need to prove negligence or intent. This is one of its main practical advantages over a general damages claim.

- **Q:** Can warranties be excluded by contract?
  **A:** Express warranties can be limited or excluded if the contract clearly says so. However, statutory conformity rights under BW 7:17 cannot be excluded in B2C contracts and are hard to exclude in B2B where the deviation is unreasonable.

- **Q:** What is the difference between a warranty of title and a warranty of quality?
  **A:** A warranty of title promises that the seller owns and has the right to transfer the asset. A warranty of quality promises that the asset meets a defined standard. Both can appear in the same transaction.

- **Q:** How long does a warranty claim have to be brought?
  **A:** Within the contractual warranty period for the cure remedy, and within the general limitation period (typically two years after discovery of the defect for B2C, five years generally) for damages. Buyers should notify promptly to preserve all options.

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