A performance warranty clause is a contractual provision where the seller or service provider guarantees that their goods, services, or work will meet specified performance standards or criteria. If these standards are not met, the clause typically outlines the remedies or corrective actions that the buyer can pursue.
Limited Software Performance Warranty. Licensor warrants that throughout the applicable License Term, the Software will function in all materials respects in accordance with the documentation listed on Exhibit 2 as the same may be revised and delivered to Customer from time to time (the “Customer Documentation”).
Performance Warranty Remedy. Customer shall notify Licensor in writing of any claim that the Software is not functioning in accordance with the Customer Documentation (the “Warranty Notice”). The Warranty Notice will include sufficient information to allow Licensor to duplicate the defect or error. Licensor will promptly repair or replace, or create a Workaround (as defined in Exhibit 1) for, any Software that fails to meet the performance warranty. If Licensor fails to correct or create a workaround for a defect reported by Customer within thirty (30) days after the defect was reported, Customer shall have the option to terminate this Agreement in which case Licensor shall refund to Customer any pre-paid license fees, pro-rated based on the number of days elapsed, and the number of days remaining in, the then-current License Term. If Customer exercises its termination option, it shall have the right to continue to use the Software under the terms of this Agreement for a transition period of up to 180 days, subject to Customer’s continued compliance with all of the terms and conditions of this Agreement and each Order From.
Performance Warranty Limitations. The performance warranty shall not apply: (a) to any modifications of the Software made other than by Licensor or its agent or contractor; (b) if the Software is not used in accordance with the Customer Documentation or this Agreement; (c) if the Software has been modified, enhanced or altered by anyone other than Licensor or its agent or contractor; or (d) to any error or defect caused by the improper use of the Software by Customer or any third party, or any third-party software.
"Performance Warranty Bank” means, with respect to the Performance Warranty, a tracking account maintained by Seller setting forth the “banked” differences in kWh based on calculation of the Performance Warranty with respect to the Portfolio during the Warranty Period.
Performance Warranty. (i)During the Warranty Period, Seller shall determine within ten (10) Business Days after the end of each Calendar Quarter, whether the Portfolio has delivered to the applicable Interconnection Points the Minimum kWh for purposes of the Performance Warranty (as set forth in the definition of “Minimum kWh”) during such Calendar Quarter (“Performance Warranty”). (ii)If such calculation indicates that the Actual kWh delivered by the Portfolio was greater than the Minimum kWh during such Calendar Quarter, then the difference (in kWh) between Actual kWh less Minimum kWh shall be recorded as a positive balance in the Performance Warranty Bank. (iii)If such calculation indicates that the Actual kWh delivered by the Portfolio was less than the Minimum kWh during such Calendar Quarter, then the difference (in kWh) between Minimum kWh less Actual kWh shall be recorded as a negative balance in the Performance Warranty Bank. (iv)Seller shall report the balance of the Performance Warranty Bank to Buyer with its delivery of the Quarterly Report. At any time the Performance Warranty Bank has a negative balance, Buyer may make a claim under Section 5.7. If Seller fails to perform any Performance Warranty calculation within the periods required by this Section 5.4, Buyer may perform its own calculations and notify Seller of the results of such calculation and, if applicable, make a claim pursuant to Section 5.7. In the event that Buyer believes Seller has made any calculation errors, the Parties shall cooperate in good faith to resolve any discrepancies between Seller’s calculations and Buyer’s calculations.
Limited Performance Warranty. Holdings warrants that the Platform will perform substantially as demonstrated and that all services performed by Holdings will be performed in a good and workmanlike manner. In the event Issuer believes that Holdings is in violation of this limited performance warranty, Issuer shall notify Holdings and Holdings shall use reasonable commercial efforts to correct any error or defect.
Products and Services Warranties. Supplier represents, warrants, and covenants to Buyer (the “Performance Warranty”) that all Products and Services provided hereunder shall: (a) conform, in all respects, to the Specifications, standards, drawings, samples, descriptions, quality requirements, performance requirements, SOW, and fit, form, and function requirements furnished, specified, or approved by Buyer in writing; (b) conform with Buyer’s Quality Requirements; (c) comply with all applicable Laws; (d) not infringe upon, violate, or misappropriate the Intellectual Property Rights of any Person; (e) for Products, to be merchantable (as such term is defined in the UCC) and free from defects, latent or otherwise, in design, materials, and workmanship; (f) for Products, be fit and sufficient for the particular purpose intended by Buyer and its customers, of which the Supplier is aware (and Supplier acknowledges that it knows of Buyer’s intended use of the Products and that such Products have been selected, designed, manufactured, or assembled by Supplier based upon Buyer’s stated use and will be fit and sufficient for the particular purposes intended by Buyer); and (g) for Products, to be new and conveyed by Supplier to Buyer with good title, free and clear of all Encumbrances.
The Performance Warranty (a) is in addition to all other warranties, express, implied, statutory, and common law, (b) extends to and survives Supplier’s delivery of the Services and Products, Buyer’s receipt, inspection, acceptance, use of the Services and Products, and payment for the Services and Products, and the termination or expiration of this Agreement, (c) inures to the benefit of Buyer and its successors and assigns and the users and customers of such Services and Products, and (d) may not be limited or disclaimed by Supplier. Without limiting the foregoing, Buyer’s approval of Supplier’s designs, materials, processes, drawings, Specifications, or similar requirements will not be construed to relieve Supplier of any warranties. Supplier shall transfer and assign to Buyer all of its rights (but not any obligations) under all warranties from equipment or material manufacturers or suppliers, permitted subcontractors, or other third parties. Any applicable statute of limitations on Buyer’s claims for breach of warranty will commence no earlier than the date on which Buyer discovers the breach.
Performance Warranty Indemnity: In the event that the website and APIs fail to perform substantially in accordance with the agreed specifications, the Developer shall indemnify the Client against any losses, liabilities, or damages incurred as a result.
We typically provide a system output performance warranty, separate from our standard solar panel product warranty, to our solar services customers. In connection with system output performance warranties, we agree to pay liquidated damages in the event the system does not perform to the stated specifications, with certain exclusions. The warranty excludes system output shortfalls attributable to force majeure events, customer curtailment, irregular weather, and other similar factors. In the event that the system output falls below the warrantied performance level during the applicable warranty period and provided that the shortfall is not caused by a factor that is excluded from the performance warranty, the warranty provides that we will pay the customer an amount based on the value of the shortfall of energy produced relative to the applicable warrantied performance level. Such liquidated damages represent a form of variable consideration and are estimated at contract inception and updated at each reporting period and recognized over time as customers receive and consume the benefits of the solar services.
A performance warranty is a contractual assurance provided by the seller or manufacturer that a product will perform to a specified level or standard for a certain period. This warranty ensures that the buyer is protected against defects or failures in the product’s performance and can seek remedies if the product does not meet the promised standards. Performance warranties can cover various aspects, such as functionality, efficiency, and durability.
You should use a performance warranty in situations where the functionality and performance of a product or service are critical to the buyer. This is especially important in the following cases:
Writing a performance warranty involves clearly specifying the criteria and terms under which the warranty applies. Here are steps you can follow:
Example: “The warranty covers all manufacturing defects and ensures the equipment will operate at 95% efficiency for five years. Should the equipment fail to meet this standard, the seller agrees to repair or replace it at no cost to the buyer.”
Performance warranties are commonly found in the following types of contracts:
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
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The Price Changes clause specifies the conditions under which the price of goods or services in a contract may be adjusted, including factors like market fluctuations, currency exchange rates, or cost of materials. It often outlines the notice requirements and processes for implementing such changes to ensure transparency and agreement between the parties involved.
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