The warranty of fitness is a legally binding agreement between a seller and a buyer that stipulates the seller is liable for any damages or losses incurred due to their product failing to meet an agreed-upon standard of performance. As the name implies, the warranty of fitness is a guarantee to the buyer that the product is suitable for the purpose it was purchased.
The Warranty of Fitness in Action
A warranty of fitness is often seen in the business world when a company purchases a piece of computer equipment for its use. With the warranty of fitness in place, if the computer fails to meet the standards of performance that were agreed upon, the seller will either repair or replace the item at their cost. This provides the buyer with recourse should the equipment not meet their needs.
Liability of the Warranty of Fitness
When a company purchases a product with a warranty of fitness, it is important to understand the scope of the warranty. This includes what types of damages are covered and for how long they are covered. Buyers should also be aware of any limitations that may be placed on the warranty, such as time restrictions or restrictions on what types of damages are covered.
Conclusion
The warranty of fitness is a legally binding agreement that provides buyers with assurance that the product purchased will meet their expectations. It is important for buyers to understand the terms of the warranty and the limitations it may possess in order to ensure they are covered should the product fail to meet their needs.