A guarantee and warranty usually are involved when purchasing a product or a service. We do know that both are beneficial, but do we know what their differences are? It might not seem important, but after knowing the differences, you might just change your mind.
In simpler terms, a warranty is like an insurance policy in which parts of the product/service bought can be insured through repair or replacement. It may also be seen as a written guarantee where a company/agency provides assurance to another party of specific facts, conditions and remedy. This means that if a fact is not met by the product or service, it allows the consumer to receive a remedy, in most cases, free repair or product replacement. Take note however, a warranty can and may have an expiration date and may not be applicable to all products and services.
Guarantee on the other hand, is a legal term that is of higher import than warranty. It is generally a promise or an assurance that attests to the quality and/or durability of a product or service. It may also be seen as a pledge where a product or service will perform in a specified manner. A guarantee is usually free and is legally binding. Also, it will take effect whether or not you have a warranty. In other words, a guarantee is separate from a warranty that’s provided by a service provider, manufacturer or other third parties.
|Written contract||May be verbal or written (verbal may need the presence of a witness to be enforced)|
|Provided by manufacturer||Can be provided by a third party|
|Does not affect the rights under the consumer act||Addition to legal consumer rights|
|Generally provides repair or replacement of a product||Provides repair, replacement and refund for a product or service|
While both terms can be seen as contingent contracts, they have their differences. Generally, a warranty is a formal statement of a fact that’s part of the contract. It should specifically mention conditions and facts and is exclusively used for a product. For example, if a warranty states that a product purchased will last for a period of time, let us say 5 years, it is the responsibility of the manufacturer to replace, repair, or even refund you for the product purchased unless stated otherwise. You on the other hand will need to provide evidence that the product was in no way misused, or that it isn’t simply the case that it isn’t needed anymore. Depending on jurisdiction, a condition still must be met.
A guarantee on the other hand, would most likely be a promise to sort out any problems with a product or service within a fixed period of time. One other difference between the two is that a guarantee can be provided by a third party besides the manufacturer. That being said, it may not last as warranties do and may not cover a wide range of problems like a warranty does, but is still as effective as a warranty. In addition, a guarantee may be expressed through verbal or written agreement, although, when a verbal guarantee is used, it is always a good idea to have a witness in case you need to enforce that guarantee.
Here you can watch a simple explanation of the difference between a guarantee and a warranty: