Disclaimer of warranties: Overview, definition, and example
What is a disclaimer of warranties?
A disclaimer of warranties is a contractual provision that limits or eliminates the warranties, guarantees, or assurances typically implied by law regarding the quality, condition, or performance of a product, service, or agreement. This provision shifts the risk of defects or performance issues to the other party, such as the buyer or user.
For example, a software license agreement might include a disclaimer stating that the software is provided "as is" without warranties of fitness for a particular purpose or error-free operation.
Why is a disclaimer of warranties important?
A disclaimer of warranties is important because it protects businesses from liability for issues that arise after the product or service is delivered, particularly for factors outside their control. It sets clear expectations for the buyer or user, limiting the seller’s or provider’s legal exposure.
For businesses, this clause helps reduce risks and ensure compliance with legal standards by clearly communicating what is and isn’t guaranteed. For consumers, it emphasizes the need for due diligence before making a purchase or entering an agreement.
Understanding disclaimer of warranties through an example
Imagine a company sells pre-owned machinery to a manufacturing business. The sales contract includes a disclaimer of warranties stating that the machinery is sold "as is" without any guarantee of performance or fitness for a particular use. This protects the seller from liability if the buyer discovers defects or the machinery doesn’t meet their operational needs.
In another example, a website hosting provider includes a disclaimer of warranties in its terms of service, stating that it does not guarantee uninterrupted service, error-free performance, or security of user data. This provision limits the provider’s liability for issues that might arise from external factors, such as cyberattacks or network outages.
An example of a disclaimer of warranties clause
Here’s how a disclaimer of warranties clause might appear in an agreement:
“The Product is provided ‘as is’ and ‘as available,’ without any warranties of any kind, express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, or non-infringement. The Provider does not warrant that the Product will be error-free, secure, or uninterrupted.”
Conclusion
A disclaimer of warranties protects businesses by limiting their liability for implied or express guarantees about the quality or performance of products or services. It helps set realistic expectations and reduce the risk of disputes or legal claims.
By including a clear disclaimer of warranties clause, businesses can safeguard their interests, ensure transparency, and clarify the scope of their obligations in contracts and agreements.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.