What is a warranty in a business transaction?

A warranty in a business transaction is a guarantee made by one party to another that certain statements made by them about the product or service they are providing are true. In Texas, a warranty is generally a written agreement that outlines the specific terms of the warranty, such as what is being covered, how long the warranty lasts, and any other specific conditions. In Texas, there are two main types of warranties that are used in business transactions: implied warranties and express warranties. An implied warranty is a guarantee that the product or service will operate or be suitable for a particular purpose as outlined in the agreement. This type of warranty is automatically applied when two parties enter into a contract, which means that the agreement does not need to provide specific details for the agreement to be enforceable. An express warranty, on the other hand, is a warranty created by specific wording found in the agreement. This type of warranty is more clearly defined than an implied warranty, as it outlines the exact parameters and obligations of the two parties involved with the agreement. In Texas, the seller must abide by the statements they make about the product or service in the agreement in order for the warranty to be valid. It is important to be aware of the applicable warranties in any business transaction in Texas in order to ensure that both parties know what is being promised. An understanding of the different types of warranties and how they are used in business transactions can help protect both parties’ rights and ensure that the products or services provided are as expected.

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What is a warranty in a business transaction?

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