A standard warranty clause in a contract typically ensures that the seller guarantees the product or service will be free from defects and will perform as described for a specified period. It often outlines the buyer's rights to repair, replacement, or refund if the warranty is breached within the defined timeframe.
The standard warranty does not provide the customer with a service in addition to providing assurance that the software license is functioning based on agreed upon specifications. We assessed whether the software license and the standard warranty are distinct in accordance with ASC 606-10-25-19 and concluded that the software license and the standard warranty do not meet the criterion in 606-10-25-19(a). The Company does not sell the software license and standard warranty on a standalone basis, which indicates that the customer cannot benefit from the software license and standard warranty on its own. Furthermore, we determined that the software license and standard warranty are not separately identifiable in accordance with 606-10-25(b) based on the factors in 606-10-25-21.
Warranty. Seller warrants the Products to Purchaser and to the end user as set forth in Seller's written Factory Warranty for the Products as is in effect at the time of the sale of the Products to the end user (the "Standard Warranty").
Seller makes no warranties of merchantability or fitness for a particular purpose, or any other express or implied warranty, except as provided in the standard warranty. The standard warranty is in lieu of all other express and implied warranties. Seller expressly disclaims and excludes any implied warranty of merchantability or fitness for a particular purpose, as well as any warranty arising from usage of trade or course of dealing.
The Standard Warranty shall not apply in the event of defects or damages caused by: (i) failure of Purchaser to comply with any operational or maintenance guidelines or requirements: (ii) physical abuse of the Products or any component or acts of vandalism by any persons other than Seller. its employees. agents. or subcontractors: (iii) alterations, modifications, additions, or repairs made during the applicable warranty period by anyone other than Seller. its employees. agents. subcontractors or authorized warranty providers: or (iv) accidents or damage resulting from fire, water. wind. hail, lightning. electrical surge or failure, earthquake. theft or similar causes not caused or contributed to by the sole negligence of Seller or its employees. agents. or subcontractors.
The limited warranty provided by Parazero to Delta in respect of the Products under this Agreement shall be Parazero’s standard warranty as shall be in effect from time to time. Other than set forth in the standard warranty, Parazero makes no warranties, representations or guarantees that operation of the Products shall be uninterrupted or error free. Parazero’s sole liability is that the Products shall comply with its specifications and configurations.
Standard Warranty: A 1 year Warranty is provided on all labor and parts sold by BEI Electrical unless otherwise noted above.
Installation & Warranty. Price of the system includes installation and standard warranty. Standard Warranty coverage is described in the chapter Technical specifications of this quotation. The price quoted assumes the timely return by Buyer of ASML’s transportation containers and other materials used in transporting the system. ASML will charge Buyer for the cost of such containers and materials if they are not returned to ASML in a timely manner. Any part removed from the system during installation and the warranty period or as part of an extended warranty service contract for replacement will be retained by ASML.
Transfer of control generally occurs upon the product leaving the HMC warehouse. HMC primarily offers an assurance-type standard warranty that the product will conform to certain specifications for a defined period of time or usage after delivery. This type of warranty does not represent a separate performance obligation. Extended warranty contracts extend coverage beyond HMC’s standard warranty agreements.
The Company provides a standard warranty on its lift trucks, generally for twelve months or 1,000 to 2,000 hours. For certain series of lift trucks, the Company provides a standard warranty of one to two years or 2,000 or 4,000 hours. For certain components in some series of lift trucks, the Company provides a standard warranty of two to three years or 4,000 to 6,000 hours. The Company estimates the costs which may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized.
We accrue for standard warranty costs based on historical trends in actual warranty charges over the past 12 months. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost over the period. The standard warranty accrual balances are held in other accrued and other long-term liabilities on our condensed consolidated balance sheet. Our standard warranty terms typically extend to one year from the date of delivery, depending on the product.
Generally, software licenses are sold with accompanying third-party delivered software assurance, which allows customers to upgrade, at no additional cost, to the latest technology if new capabilities are introduced during the period that the software assurance is in effect. In most instances, we determined that the accompanying third-party delivered software assurance is critical or essential to the core functionality of the software license because we do not sell the software license and standard warranty on a standalone basis (which indicates that the customer cannot benefit from the software license and standard warranty on its own), the software license and the standard warranty are not separately identifiable, the software license assurance warranty are inputs of a combined item in the contract, the assurance warranty and software license are highly interdependent and interrelated because the core functionality of the license is dependent on the assurance warranty, and our promise to provide the assurance warranty that is necessary for the software license to continue to provide significant benefit to the customer.
The standard warranty terms of each Seller, with respect to the ER Business, and each Subsidiary used in the sale of its products are listed on Schedule 3.22.1 (collectively, the “Standard Warranty Terms”). Sellers have provided to Buyer true and complete copies of all Standard Warranty Terms. Except for those exceptions described on Schedule 3.22.1, no Seller, with respect to the ER Business, and no Subsidiary has granted warranty terms in the sale of its products that deviate from the Standard Warranty Terms by more than three (3) years or 36,000 miles.
Once the item is shipped under the FOB terms specified in the order, which is primarily “FOB Factory”, other than a standard warranty, there are no other obligations to the customer. The standard warranty is typically for a period of, one to two years for parts and labor and is deemed immaterial.
Warranty Accrual – The Company carries inventory for the purposes of supporting its product warranty. Standard warranty is typically 13 to 36 months, but the Company earns revenue by providing enhanced and extended warranty and repair service during and beyond the standard warranty period. Customer service inventory consists of both component parts and finished units.
The products provided by Party B enjoy the standard warranty commitment of the manufacturer in China.
A Standard Warranty is a written guarantee provided by a manufacturer or seller that assures the buyer that a product will meet certain quality and performance standards for a specified period. If the product fails to meet these standards within the warranty period, the manufacturer or seller is usually obligated to repair, replace, or otherwise rectify the issue.
Warranties are an important aspect of consumer protection, providing confidence to consumers when purchasing products. They serve as a promise of quality and durability, potentially influencing buyers’ decisions.
Use a Standard Warranty when:
To write an effective Standard Warranty, consider including the following key elements:
Example:
Standard Warranty Statement
This product is warranted against defects in materials and workmanship for a period of one year from the date of original purchase. This warranty does not cover damage caused by misuse, accident, or unauthorized modifications. To initiate a warranty claim, please contact our customer service department at [email address] with your proof of purchase.
Standard Warranties are commonly found in contracts for:
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A standstill provision is a contractual clause that restricts one party from making certain actions, such as purchasing additional shares or launching takeover bids, for a specified period. This clause is often used in merger and acquisition agreements to maintain the status quo while negotiations or due diligence are ongoing.
The statutory compliance clause requires all parties to adhere to applicable laws, regulations, and legal standards relevant to the contract's execution and subject matter. It aims to ensure that all actions, obligations, and deliverables under the contract comply with current legal requirements, mitigating legal risks and potential liabilities.
A statutory deductions clause specifies that any required deductions, such as taxes or social security contributions, will be withheld from payments made under the contract in compliance with applicable laws. This ensures that both parties fulfill their legal obligations for deductions mandated by governmental authorities.
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