The market is flooded with end number of products and services, but it’s hard to identify which one is good or bad. As a buyer, you can specify the product of your choice to set a standard for the manufacturing entities. In my opinion, every buyer should be known about the concepts of guarantee and warranty, to safeguard the interest of the consumers. In business parlance, the guarantee is termed as a promise given by the seller, that the particular product will be replaced or repaired in case it is below standard. On the other hand, warranty provides assurance about the state of the product are true.
Content: Guarantee Vs Warranty
|Basis for Comparison||Guarantee||Warranty|
|Meaning||The guarantee serves as a promise made by the manufacturer, to the buyer, that in case the product below quality, it will be repaired, replaced or the money deposited will be refunded.||Warranty is a written assurance that the facts specified in the product is true and genuine, but if they are not it will be repaired or replaced.|
|What is it?||Commitment||Assurance|
|Applicable to||Product, service and persons.||Product only.|
|Condition of sale||May or may not be a condition of sale||Subsidiary condition of sale, which may be expressed or implied.|
|Validity||It can either be oral or written.||It is generally written and so it is easy to prove.|
|Cost||Free of cost||The buyer has to pay for warranty.|
|Term||Varies from item to item||Long term|
|Money back (in case of default)||Yes||No|
Definition of Guarantee
The guarantee is defined as the promise for the after-sales performance of the product or service. It expresses that the manufacturer has given promise regarding the content, quality or performance of the product and in case, the obligation is not fulfilled then the manufacturer will replace or repair the product or the money paid as consideration will be refunded. Although, it is valid up to a fixed time only. Guarantee adds to the rights of the consumer.
In the contract of guarantee, there are three parties, i.e. surety, the principal debtor, creditor where the manufacturer acts as a surety, if the performance of the product is below average.
Definition of Warranty
Warranty is defined as an assurance given by the manufacturer or seller to the buyer that the specified facts about the product are true. It is a collateral condition to the main objective of the contract. It specifies that the particular product is up to the standard, i.e. quality, fitness and performance. It applies to tangible objects like machines, electronic equipment etc.
In case if the product does not satisfy the set standards, then the manufacturer will repair it or replace its defective part, or it will be completely replaced. There are two types of warranty i.e. express or implied.
Key Differences Between Guarantee and Warranty
The major differences between guarantee and warranty are described below:
- The guarantee serves as a promise made by the manufacturer, to the buyer, that in case the product is below the specified quality, it will be repaired, replaced or the money deposited will be refunded. Warranty is a written assurance that the facts specified in the product are true and genuine, but if they are not it will be repaired or replaced.
- The guarantee is a sort of commitment made by the manufacturer to the purchaser of goods, whereas Warranty is an assurance given to the buyer by the manufacturer of the goods.
- Guarantees can be oral or written, where oral guarantees are very hard to prove. As opposed to warranty, which is usually written and so, it can be easily proven.
- The guarantee covers product, service, persons and consumer satisfaction while warranty covers products only.
- The guarantee is free of cost. On the other hand, the customer should have to pay for the warranty to safeguard the interest.
- A guarantee is comparatively less formal than a warranty.
- The term of the guarantee varies from item to item. Conversely, the warranty is for long term or any product or any part of the product.
- In the case of guarantee, money back is possible, if stated specifically, however, this is not possible in warranty.
- A warranty is a subsidiary condition of sale, which may be expressed or implied. On the other hand, guarantee may or may not be a condition of sale.
After the deep discussion above, we can say that to some extent guarantee and warranty resemble each other, as they both talk about the performance of the product, but they are not the same thing.