What is a warranty in a business transaction?

A warranty in a business transaction is a legally binding guarantee that certain aspects of a product or service are as advertised. In Louisiana, there are two primary types of warranties. Express warranties are promises made by the seller, either verbally or in writing, that the product or service will meet certain standards. Implied warranties, on the other hand, are typically deemed by the courts and don’t require any verbal or written communication from the seller to the buyer. In Louisiana, some implied warranties are: a merchantability warranty, which means the product or service must be able to be used for its intended purpose; a fitness warranty, which means the product or service must be fit for the particular purpose as it was meant to be used; and a title warranty, which means the seller has a right to transfer ownership of the product or service to the buyer without any interference. While it is not legally required that warranties be included in business transactions, it is important for both parties to account for them, and discuss the risks and benefits of the promises that each party is making.

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What is a warranty in a business transaction?

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