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An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers in addition to the standard warranty on new items. The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer.
The FTC has enacted regulations governing the disclosure of written consumer product warranty terms and conditions on consumer products actually costing the consumer more than $15. The Rules can be found at 16 C.F.R. Part 701. Under the terms of the Act, ambiguous statements in a warranty are construed against the drafter of the warranty.
Statute may also declare a term or nature of term to be a condition or warranty. For example, the Sale of Goods Act 1979 (UK) s15A [7] provides that terms as to title, description, quality, and sample (as described in the Act) are conditions save in certain defined circumstances.
Purchase terms and conditions are a form of contractual term entered into with the manufacturer of a product following the buyers’ purchasing of it. Not all products come with these purchasing requirements and the specific terms and conditions may vary depending on who the manufacturer is, what the product is and how much it costs.
A warranty is a term of a contract, but not usually a condition of the contract or an innominate term, meaning that it is a term "not going to the root of the contract", [6] and therefore only entitles the innocent party to damages if it is breached, [6] i.e. if the warranty is not true or the defaulting party does not perform the contract in ...
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