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How to deal with warranties and guarantees in a signed contract?

 

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Mochadocs - Contract Management - Specific Info V2

 

 

Promises

Warranties and guarantees are promises made by one party to another in a contract. These promises may be express or implied, and they typically relate to the quality, performance, or durability of goods or services (such as support) being provided under the contract.

 

 

 

Dealing with warranties and guarantees

Dealing with warranties and guarantees in a signed contract involves understanding the terms of the warranty or guarantee and taking steps to enforce the promise if necessary. This can involve following the procedures outlined in the contract for making a claim, providing evidence of the breach of the warranty or guarantee, and negotiating a resolution with the other party.

 

Tip: Activate a task in your Contract Management Hub so you receive the Warranty or Guarantee information in time. 

 

 

Reading the contract carefully

It's important to understand the terms of the warranty or guarantee. This may involve reading the contract carefully and looking for any specific language related to warranties and guarantees. In some cases, the warranty or guarantee may be included as a separate file or document, in which case it is important to review this files or document carefully as well.

 

 

Breach or no breach, that's the question

Once the terms of the warranty or guarantee are understood, the next step is to determine whether the other party has breached their obligations under the warranty or guarantee. This may involve conducting an inspection or testing of the goods or services provided under the contract, or gathering other evidence of the breach of the warranty or guarantee. Be aware of any milestones that may apply.

 

If a breach of the warranty or guarantee is found, the next step is to take action to enforce the promise. This may involve making a claim under the warranty or guarantee, which typically involves providing notice to the other party and outlining the specific breach of the warranty or guarantee. Depending on the terms of the contract, the claim may need to be made within a certain timeframe, so it is important to act promptly.

 

 

What happens after a claim?

Once a claim has been made, the other party may choose to honor the warranty or guarantee and provide a remedy for the breach. This could involve repairing or replacing the goods or services, providing a refund, or offering other compensation. If the other party does not honor the warranty or guarantee, it may be necessary to pursue legal action to enforce the promise.

 

In some cases, it may be possible to negotiate a resolution with the other party without resorting to legal action. This could involve discussing the breach of the warranty or guarantee and coming to an agreement on a satisfactory remedy. If a negotiated resolution is not possible, however, it may be necessary to seek legal assistance in order to enforce the warranty or guarantee.

 

 

Step 5 - Consistency

Dealing with warranties and guarantees in a signed contract involves understanding the terms of the warranty or guarantee, determining whether a breach has occurred, and taking action to enforce the promise if necessary. By following these steps and adding them into a professional contract management tool, parties to a contract can protect their rights and ensure that the other party honors their obligations under the agreement.

 

 

Learn more about Contract Management

 

 

 

 

 

written by

David Limaheluw

Mochadocs Customer Success

 

 

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