Difference Between Guarantee & Warranty
What is the Difference Between Guarantee and Warranty is perhaps one of the most puzzling questions that always run through the mind of millions of consumers. In nutshell, everyone wants to know what is the relation or Difference Between Guarantee and Warranty? What do these two ambiguous terms mean and what leads to this ambiguity? And, in what situations do we use them and where the basis difference lies? Today in this post we throw light on all those critical points that give customers’ a clear understanding of what is the basic difference between guarantee and warranty and what drives customers’ to get a guarantee and warranty receipt from the retailer at the time of purchase. It goes without saying that a consumer is the real king of economy. Consumers, no matter what their spending capacity is, are entrusted with the responsibility to play an important character in making markets function in a better, dynamic and prosperous way. Since they never shirk their responsibility, it is also quite necessary for them to know that what their Consumer Rights are and how can they seek protection with customer-centric facilities like guarantee and warranty. So, let us go through the following points to clear up the basic difference that lies between Guarantee and Warranty as it is always worth reading up on your consumer rights before heading to the market to buy an item of service.
Guarantee and Warranty Differences
- A guarantee is usually a promise to sort out any problems with a product or service within a stipulated time
- A guarantee is usually free and is a given on an item by the manufacturer or the service provider
- It adds to customers’ consumer rights and protect them under consumer law
- Whether customers paid for a guarantee or not, it is legally binding
- The guarantee should compulsorily explain how you would make a claim in a way that is easy to understand
- It comes into effect right from you purchased a product whether or not you have a warranty
- In nutshell, a warranty is a legal contract
- It acts like an insurance policy for which you must pay a premium
- Sometimes a warranty is termed as an ‘extended guarantee’
- It may last longer than a guarantee and cover a broader range of issues
- The terms of the contract should be clear and fair
- A warranty never reduces your rights under consumer law
- A warranty can be in place with a guarantee
When you hit the market to make purchase for a domestic appliance or any other service, it is prerequisite that you know everything about the rights that guard you against any damage, loss or adulteration. When you as a consumer make your purchase as an informed purchaser, you force the merchants and enterprises to provide high standards of goods and Customer-centric Services to you. In this scenario, understanding of basic some terms like guarantee and warranty become immensely important for you. If you flip through the dictionaries to see the meanings of guarantee and warranty, you will find that almost most of the dictionaries term these two words as synonyms. However, in the parlance of market, there is a subtle difference that lies between the two terms. The basic Difference Between Guarantee and Warranty is legal, not linguistic. Both terms efficiently connote their implied meaning successfully and have been extensively used in the context of a contract or bargain for the time unmemorable.
A Guarantee is a promise that states if an item is not of a certain standard or fails to fulfill its promised statements, the original price for the contract or bargain will be returned to the buyer. It is usually a promise to sort out any problems with a product or company within a specific period of time. For example, if a shopkeeper vends an item to any customer and guarantees that it will produce 20 widgets a day, the customer possesses the right to return the item to shopkeeper for a full refund if it does not, in fact, produce 20 widgets a day.
On the other hand, a Warranty is a term of a contract. If, in any circumstance, this contact is breached, it gives rise to a claim for damages. One thing is to be noted that one can claim for only damages, but not the negation of the whole contract. For example, if a shopkeeper sells an item to any customer and warrants that it can produce 20 widgets per day, but it produces only 19, the customer can bring an action for damages against the shopkeeper for the lesser of the cost of fixing the item such that it does produce 20 widgets per day or the loss of profit associated with the production of 19 as opposed to 20 widgets. The customer cannot, however, return the item for a full refund.
In the consumer goods context, guarantee and warranty always hold a lot of importance. In the parlance of consumer markets a warranty typically connotes that the warrantor may repair or replace a product which has shown signs of a fault during the warranty period. This may be due to a defect in design or manufacturing from the warrantor’s side. The very fact that the warrantor may take the responsibility to repair the product, and not give a refund, is what distinguishes warranty from a guarantee.