Biz Legal Contract Term EXPLORED: Warranties & Representations

Biz Legal Contract Term EXPLORED:

Warranties & Representations


Warranties and representations are sometimes used interchangeably but actually have different meanings.

A warranty guarantees that a product or service insures against something in the future. (Ex. Warranty on a TV for 1 year; if it breaks you get it replaced.) A representation is a current promise that something IS or IS NOT. (Ex. This house is free from tax liens.)

Points to Consider

  1. What is an “Express warranty”?-  Ex. A written statement that “This washer will not break within a year”. Vs. What is an “Implied warranty?”- Ex. A hammer. It doesn’t have to be stated that a hammer will perform its function of hammering properly, i.e. that it won’t crumble when you hammer something.
  2. Various types of warranties exist- Warranty of merchantability, warranty of fitness for a particular purpose, warranty of title, lifetime warranty, second-hand product warranty, home warranty, car warranty, etc.
  3. The U.C.C. (Uniform Commercial Code)- The UCC, Article 2, covers the rights and remedies of buyers and sellers of goods (not services). It covers the extent to which sellers may disclaim certain types of warranties. This is a very technical area of law so please CONSULT AN ATTORNEY if you are selling goods; if you are selling services you don’t have to worry about Article 2 of the UCC (although you still have to worry about the warranties and representations you make) but if you are selling goods and services, you may have to worry about Article 2 of UCC.

In Georgia…

The Uniform Commercial Code has been adopted in its entirety. It is a book of rules for the sale of goods and for merchants.

General Advice

Make sure you have an attorney that understands the U.C.C. There are “special provisions” in there that can trip up an unsuspecting merchant that sells goods.

If you offer warranties, whether selling goods or services, make sure that you can follow through with these guarantees and have adequate insurance to remedy in case a warranty is used.

DISCUSSION QUESTION: Does your business offer any warranties? KLP does! See below!

Why Kendrick Law Practice?- We SAVE you money by:

  1. Providing access to comprehensive legal AND business advice and consulting, creating value for
    your company’s investment in us.

    KLP’s Founder, Dar’shun Kendrick, holds a law degree and Master’s in Business
  2. Providing security through our three (3) point guarantee:
    1. “24 hour guarantee”- You will receive a phone call from an attorney within 24 business hours of submission your information through our website;
    2. “72 hour guarantee”- You will receive your document drafted or reviewed within 72 business hours after payment (or it’s FREE!) and
    3. “Dispute guarantee”- KLP will negotiate the terms of any document that we drafted or reviewed FOR FREE should a dispute arise (*Does NOT include litigation costs.).
  3. Providing predictability through our FLAT FEE pricing on most of our services. You know EXACTLY what you are paying for a completed document.

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