What is a warranty in a business transaction?
A warranty in a business transaction is a statement made by the seller (person selling the product or service) that guarantees a certain level of quality or performance from a product or service. In Washington, warranties may be either expressed or implied. An expressed warranty is a written statement made by the seller that explicitly promises the buyer that the product or service will meet a certain level of quality or performance. An implied warranty is an understanding that the product or service will meet a certain level of quality or performance without a written statement by the seller. In Washington, the implied warranties of merchantability and fitness for a particular purpose, as well as any warranties created by prior course of dealing between the parties, are automatically included in each business transaction. To ensure they are legally binding, warranties should be in writing and signed by both parties.
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