Clause guide

Warranty Clause clause: meaning, risks, and what to negotiate

Promises that certain statements about a product or service are true.

What it means

Warranty clauses create legal guarantees. If those guarantees are broken, the other party may have legal remedies.

Common risks

  • Warranties may be too broad.
  • You may guarantee performance beyond your control.
  • Warranty periods may be longer than necessary.

What to check before signing

  • What exactly is being guaranteed?
  • How long does the warranty last?
  • What remedies are available if the warranty is breached?

Negotiation ideas

  • Limit warranty scope to specific deliverables.
  • Shorten warranty periods.
  • Limit remedies to repair or replacement.

Example clause

Provider warrants that the Services will be performed in a professional and workmanlike manner.

Frequently asked questions

What is the difference between a warranty and a representation?

A warranty promises something is true, while a representation states a fact relied upon by the other party.

Related clauses

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