Warranty
A guarantee that work or products will meet specified standards.
Definition
A warranty is a promise that work or products will meet certain standards or perform certain functions. For services, warranties might guarantee that deliverables will function as specified for a period after delivery. For products, warranties cover defects in materials or workmanship.
Warranties specify what's covered, duration, remedies (repair, replace, refund), and exclusions. Express warranties are explicitly stated; implied warranties arise automatically by law in some jurisdictions (like implied warranty of merchantability).
Why It Matters
Warranties define what happens when something goes wrong. They set client expectations and limit provider liability. Too generous a warranty can be costly; too limited may damage customer confidence.
From a billing perspective, warranty work is typically provided at no additional charge within the warranty period. The cost of honoring warranties should be factored into pricing.
Examples
- 1
A web developer offers a 30-day warranty: bugs in delivered code will be fixed at no charge; new feature requests are additional.
- 2
A software product warranty: defects will be repaired in updates for one year; hardware failures are not covered.
- 3
A warranty limitation: "warranty is void if product is modified by unauthorized parties or used in unintended ways."
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