Warranty

Summary of Warranty

In marine insurance contracts, either an exemption from or limitation to the policy, or a promissory warranty whereby the insured agrees to do, or not to do, some particular act. Failure to adhere strictly to a promissory warranty may invalidate a contract of insurance, whether or not the action involved was material to the loss sustained.

(Main Author: William J. Miller)

Introduction to Warranty

Warranty, in U.S. law of contracts, an undertaking expressed or implied, given by one contracting party to another, that a fact alleged with respect to the subject matter of the contract is as represented. An example of a warranty is that made in a warranty deed (see Covenant) whereby the seller covenants that he or she has title to the property and that the property is free from encumbrances. A breach of warranty results from the failure of the subject matter of the contract to conform to the facts as represented, giving the injured party a cause of action for the breach.” (1)

Warranty in International Trade

Meaning of Warranty, according to the Dictionary of International Trade (Global Negotiator): A promise by a contracting party that the other party can rely on certain facts or representations as being true, A seller, for example, may warrant that certain products will meet a list of specifications furnished by the buyer.

Resources

Notes and References

• Information about Warranty in the Encarta Online Encyclopedia

Guide to Warranty