What is a warranty in a contract?

A warranty in a contract is a promise made by one party to another that certain conditions are true or will be fulfilled. In South Carolina, contracts that include warranties must follow certain guidelines in order to be enforceable. In general, a warranty must be in writing, signed by both parties and must be specific about what is promised. The warranty must also be unambiguous, meaning it is clear and cannot be interpreted in different ways. The most common type of warranty in a contract is the warranty of merchantability, which is an assurance that the goods or services promised will be of average quality and fit for the ordinary purposes they are sold for. The warranty of fitness for a particular purpose is another type of warranty that promises that the goods or services promised will be suitable for a particular use. All warranties are subject to certain statutory conditions, such as the reasonable expectation that the terms of the warranty will be followed. Additionally, warranties are void if they involve unlawful activities, are unconscionable, or if the terms of the warranty are agreed to by both parties. In South Carolina, warranties can often be breached, for which the non-breaching party may be entitled to damages. In these circumstances, the non-breaching party may also be entitled to "reliance damages," which are aimed at compensating the non-breaching party for the costs of relying upon the warranty.

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