TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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In manufacturing contract law, a warranty is typically a promise that is not an express term of the agreement: it's a term "ordinarily implied by the agreement", which only entitles the innocent third party against the breach or default of the warranty. What does that mean? The meaning of "manufacturing" is something like "performing". Under the law of ordinary usage, warranties don't normally attach to the product at its inception, as the company that manufactures it has to do so if it's going into commercial production. That's because the goods sold in the course of production have already been put through various processes, with their complete properties understood by the company that manufactures them.

So the manufacturers' warranty normally covers defects in materials or workmanship and does not cover the results of those processes. The buyer should therefore demand a guarantee for the goods sold, one that applies specifically to the manufacturer and one that's enforceable by law (a public law). A general warranty, often called a "universal" or "comprehensive" warranty, can apply to practically any defect in a product, while a limited warranty, often called a "limited period" or "indemnity" warranty, only covers defects resulting from improper handling, excessive use, negligence, or abuse.

A good warranty will cover all defects in the product, but may provide for some additional services as well. For example, a manufacturer may provide coverage for pre-existing conditions, such as shock and damage to fixtures and fittings. This kind of service can sometimes be referred to as "curable failure" - if, for some reason, the product fails to meet certain specifications, the warranty will pay for replacement. The same holds true for extended warranties - if the product fails to meet the warranty terms, the warranty will pay for repair or replacement. In addition, a manufacturer or agent can sometimes offer to finance the cost of repair or replacement of a defective product.

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