Warranties in technology agreements: the basics

Warranties in technology agreements can be a crucial component of a technology transaction. They provide a level of protection for both the service provider and the customer, ensuring that the services being provided meet certain standards and that any issues that may arise will be addressed in a timely and satisfactory manner.

There are two main types of warranties that are typically included in technology services agreements: express warranties and implied warranties. Express warranties are those that are explicitly stated in the agreement, while implied warranties are those that are assumed to be in place even if they are not explicitly stated.

Express warranties can include things like a guarantee that the services provided will meet certain performance standards or that certain features will be available. For example, a service provider may include a warranty that their software will have a certain uptime percentage or that their hardware will be free from defects.

Implied warranties, on the other hand, are more general and are assumed to be in place even if they are not explicitly stated. These can include things like a warranty of merchantability (meaning that the services will do what they purport to do) and a warranty of fitness for a particular purpose (meaning that the services provided will meet the specific needs of the customer).

It’s important to note that warranties can be given limitations. A service provider may disclaim implied warranties. Warranties may have time limits, meaning that they will only be in effect for a certain period of time after the services are provided. And a contract can provide that certain remedies (e.g., repair or replacement) serve as the exclusive remedy for the breach of a warranty.

Warranties are an important aspect of technology services agreements and provide a level of protection for both the service provider and the customer. Knowing the types of warranties that are typically included and understanding the scope of the warranties and any limitations or exclusions that may apply is crucial when reviewing and signing a technology services agreement.

See also: Working without a signed contract – a good idea for vendors?

Evan Brown is a technology and intellectual property attorney in Chicago. Follow him on Twitter at @internetcases.

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