Warranty (Sale of Goods)
This Warranty can be used by a seller to provide reassurance to a buyer that a product is free from defects in workmanship and materials.
(0 reviews)
Last updated December 16, 2024
Under 5 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This Warranty can be added to a sale of goods agreement, a refund and returns policy or a terms of trade, and can be placed on a product listing page.
What is a Warranty?
The term is defined in the various sale of goods legislation (eg Sale of Goods Act 1923 (NSW); Goods Act 1958 (Vic); Sale of Goods Act 1896 (Qld); Sale of Goods Act 1895 (WA); Sale of Goods Act 1895 (SA); Sale of Goods Act 1896 (Tas); Sale of Goods Act 1972 (NT); Sale of Goods Act 1954 (ACT)) all of which have similar requirements (Acts). Warranty is defined as an agreement with reference to goods which are the subject of a contract of sale, but collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages, but not a right to reject the goods and treat the contract as repudiated.
This precedent warranty clause relates to the warranty that the goods are free from defects in workmanship and materials. One must be mindful that a consumer has statutory rights in the form of consumer guarantees under the Australian Consumer Law (ACL) (located in schedule 2 of the Competition and Consumer Act 2010 (Cth)). These rights cannot be restricted, limited or modified by way of agreement (see section 64 of the ACL). A drafter needs to be careful not to misrepresent the statutory rights of a consumer under the consumer guarantees, otherwise sections 18 and 29(1)(m) of the ACL may be contravened.
The Legal Risk Score of a Warranty (Sale of Goods) Template
Our legal team have marked this document as low risk considering:
- There is a risk that the seller will not cover damages or losses caused during the shipping of the product, which could result in additional costs or losses for the buyer.
- The warranty is void if the product has been tampered with or misused, potentially leaving the buyer without recourse if the product fails under such circumstances.
- The document excludes all warranties except for those that are specifically mentioned, such as certain consumer guarantees under Australian law, which might limit the buyer's protection or recourse options.
Warranty (Sale of Goods) Checklist
Complete your free Warranty (Sale of Goods) with our checklist
Verify Proof of Purchase:
Ensure that the proof of purchase is kept safe as it must be presented when returning the product under warranty.
Check Product Integrity:
Regularly inspect the product to ensure that the serial number is intact, the casing is not opened, and it has not been tampered with, to maintain the validity of the warranty.
Proper Installation and Use:
Follow the manufacturer’s instructions for installation and use to avoid misuse or improper handling that could void the warranty.
Prepare for Potential Shipping:
If returning the product, package it securely and consider insurance, as the seller is not responsible for damage or loss during shipping.
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