The Procurement Glossary » Warranty
Warranty
Contracts & Legal
Definition
A supplier's assurance that goods or services will meet defined standards, with a remedy if they do not.
Explanation
Warranties cover conformity, quality and fitness for purpose for a period, obliging the supplier to repair, replace or refund defects. They shape total cost and risk, and interact with statutory rights the buyer holds regardless.
Example
The equipment carries a two-year parts-and-labour warranty covering any manufacturing defect.
Related terms
- Indemnity — A contractual promise by one party to cover specified losses or liabilities suffered by the other.
- Quality Assurance (QA) — The proactive processes that ensure goods and services will meet required quality standards.
- Terms and Conditions (T&Cs) — The standard clauses governing a transaction or relationship, covering rights, obligations, liabilities and remedies.
- Acceptance — The buyer's formal confirmation that delivered goods or services meet the agreed requirements, often triggering payment.
Frequently Asked Questions
What is Warranty?
A supplier's assurance that goods or services will meet defined standards, with a remedy if they do not. Warranties cover conformity, quality and fitness for purpose for a period, obliging the supplier to repair, replace or refund defects. They shape total cost and risk, and interact with statutory rights the buyer holds regardless.
Can you give an example of Warranty?
The equipment carries a two-year parts-and-labour warranty covering any manufacturing defect.
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