What is Warranty?

Every buyer has a fundamental right to receive goods or services that conform to the contract. This is the legal conformity requirement: if a product does not meet the agreed specification, is defective, or does not perform as described, the seller is in breach. The standard remedy is repair or replacement, and in serious cases rescission or damages.

Above the statutory minimum, suppliers may offer a commercial warranty — an additional contractual commitment that can be more generous than the law requires. This might include a longer warranty period, faster response times for defects, or broader coverage of fault types. The commercial warranty creates a direct contractual entitlement that is enforceable without needing to establish statutory liability.

In B2B contracts, parties are generally free to adjust warranty terms. Suppliers frequently limit liability for defects through liability cap clauses. This means a warranty that looks attractive on the surface can be undermined if the maximum liability is set too low to cover realistic loss.

A warranty clause typically covers: the warranty period (commonly 12 or 24 months from delivery), the scope of coverage (which defects are included and which are excluded), the procedure for making a claim (how and within what period must a defect be reported), and the remedy available (repair, replacement, or refund). The absence of any of these elements creates room for dispute.

A common confusion is between warranty and liability. Warranty concerns the quality of the product or service itself. Liability concerns the damages caused by a defect. The two often overlap but are legally distinct concepts.

A clear warranty clause protects you as a buyer when defects arise, without requiring extensive proof of the supplier's fault. If the supplier has given a warranty and the product fails to meet it, you have a direct claim.

As a supplier, the warranty clause determines your obligations when things go wrong. A warranty that is too broad creates cost exposure; one that is too narrow leads to disputes about what is and is not covered. Clarity upfront saves cost and conflict later.