This form provides boilerplate contract clauses that disclaim or limit warranties under the contract. Several different language options are included to suit individual needs and circumstances.
Utah Warranty Provisions
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70A-2-314 Implied warranty -- Merchantability -- Usage of trade. (1) Unless excluded or modified (Section 70A-2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind.
A warranty clause is a provision in a contract that generally provides a promise specifying that something is true or will happen. In contract law, this clause can have more than one meaning, and it tends to be one of the most misunderstood.
It is equivalent to the contractor warranting that no defects or deficiencies will develop in its construction work for a period of a year, combined with a promise to return to the jobsite to repair or replace any work which is found to be defective or deficient before the expiration of the one year period.
General Warranty Depending on the type of contract, a warranty clause may cover the products or services to be exchanged. For example, in a sale of goods, the warranty clause will generally promise that the seller will provide goods that are free of defects, otherwise the buyer can seek a legal remedy for the breach.
'WARRANTY PROVISIONS means any provisions related to the scope and method of quality warranties for the Contractual Vehicles indicated in the Instructions for Use and Maintenance accompanying the Contractual Vehicles.
Warranty liability is usually classified as current liabilities in the balance sheet but if the warranty coverage extends beyond the financial year then the company is required to split this liability between current and non-current sections of the position statement of an organization.