Warranty Terms are provisions in foreign trade contracts regarding the seller's quality assurance for the goods sold and after-sales repair responsibilities. They typically specify the warranty period, scope of warranty, exclusions, repair or replacement methods, cost bearing, and claim procedures. They are commonly used in export contracts for durable goods such as machinery, electronic products, and components. Points to note: the starting point of the warranty period (e.g., shipment date, arrival date, or acceptance date) must be clear; the scope of warranty should distinguish normal wear and tear, misuse, force majeure, etc.; the warranty method (free repair, replacement of parts or entire unit) and response time should be agreed; also note the difference from 'Guarantee' and 'Quality Clause'—warranty focuses on after-sales repair responsibility, while guarantee may involve express commitments to goods specifications. In addition, compatibility with the destination country's laws (e.g., consumer protection law) must be considered to avoid invalid clauses.
📝 Examples
1. The warranty period for the equipment under this contract is 12 months from the date of the bill of lading. During the warranty period, for failures caused by the product's own quality problems, the seller is responsible for free repair or replacement of parts, but does not bear the buyer's on-site labor costs and indirect losses. (Note: Clarifies the starting point, scope, and cost sharing of the warranty.)
2. The buyer must notify the seller in writing within 7 days after discovering quality defects, and provide photos and inspection reports; otherwise, the warranty right is deemed waived. The seller shall propose a solution within 14 working days after receiving the notice. (Note: Sets claim time limits and response procedures to avoid disputes.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner