Did you know that India’s extended warranty market was $305.42B in 2021 and is set to hit $1,502.38B by 2031, growing at 17.5% annually?

Ever thought about offering a warranty but not sure how to write it down? A warranty agreement is just a clear promise to your customers about how you’ll handle repairs, replacements, or refunds. But how do you make sure it’s done right?

If you’re looking for a warranty agreement template to help you get started, or a free warranty agreement PDF for a simple example, you’re in the right place. In this guide, we’ll show you exactly how to write a warranty agreement that covers everything you need.

Curious to see a warranty agreement sample? Let’s take a closer look!

What is a Warranty Agreement?

A Warranty Agreement is a written contract between two parties: one that provides a product or service and another that receives it. This agreement clearly defines what is covered under warranty, how long the coverage lasts, and what happens if the product fails within that period.

• It’s a contract between a seller and a buyer that outlines the warranty terms for a product or service.
• It explains what repairs or replacements the seller will provide if the product has defects.
• It sets expectations for both parties, like how long the warranty lasts and any conditions that apply.
• It includes rules on claims, exclusions, and dispute resolution to avoid misunderstandings.
• This agreement helps both the buyer and the seller by ensuring a fair and transparent process if something goes wrong with the product.

When can you Use a Warranty Agreement?

1. Sell Gadgets with Trust: Companies make a warranty agreement when they sell things like phones, computers, or TVs. They promise to fix or replace the gadget if it stops working in a set time, like one year. For example, a store gives a warranty on a laptop, so if the keyboard breaks, they repair it for free. This helps people feel good about buying.
2. Back Up Home Appliances: Makers add a warranty agreement to things like fridges, washers, or ovens. They agree to fix or replace the item if it breaks soon after buying. For instance, a company offers a two-year warranty on a stove, so if it won’t heat, they send a new one. This makes buyers sure their purchase is safe.
3. Help Car Buyers Feel Safe: Car sellers give a warranty agreement for new or used cars to cover fixes for parts like the motor or brakes. For example, a car lot provides a three-year warranty, fixing the engine if it fails. This lets buyers know they won’t pay big repair costs right away.
4. Fix Software Problems: Tech companies use a warranty agreement to promise their software or apps work properly. If the software crashes, they fix it or give your money back. For example, a company warrants an app for 60 days, making sure it works right. This keeps users happy with the product.
5. Stand Behind Furniture or Tools: Stores selling things like chairs or tools, like hammers, offer a warranty agreement to fix or replace items that break too soon. For example, a shop warrants a table for one year, replacing it if the legs crack. This shows buyers the item is strong and worth getting.

So, now you know the key situations where a warranty agreement is essential. Have you ever faced issues with a product but didn’t have a clear warranty in place? Comment below!

What are the Different Types of Warranty Agreement?

1. Express Warranty Agreement: Sellers use this a lot because it’s written and clear. They promise to fix or replace specific things, like a laptop battery that fails in a year. It comes with most products, like phones or TVs, and helps buyers trust the purchase.
2. Limited Warranty Agreement: This is really common because it only covers certain parts, saving sellers money. For example, a fridge warranty fixes the cooling system but not the door. You see it on cars, electronics, and furniture since it’s practical.
3. Implied Warranty Agreement: Every product has this because the law says so. It promises the item works, like a lamp that should turn on. Even without a written warranty, it protects buyers, making it a big part of every sale.
4. Extended Warranty Agreement: Stores sell this for extra protection, like adding two years to a camera’s warranty. It’s popular for pricey things like computers or cars because buyers want to feel safe, and sellers make money from the fees.
5. Full Warranty Agreement: This isn’t used as much but shows a product is high-quality. It covers all parts, like a vacuum with free fixes for two years. Buyers like it, so it’s used for fancy appliances or strong tools.

What are the Consequences of Not Providing a Warranty Agreement?

If a business doesn’t provide a warranty agreement, it can lead to a lot of problems for both the company and its customers. Let us show you what can happen:

1. More Customer Complaints and Legal Trouble

• When there’s no clear warranty, customers might not know what to expect if something goes wrong. This leads to arguments and disputes.
• A survey found that 54% of online shoppers have had their warranty claims rejected at least once, which shows how often these issues happen.

2. Customers May Lose Trust in the Business

• People feel safer buying from companies that provide clear warranties.
• In fact, 47% of customers prefer brands that offer warranty protection because it gives them peace of mind. 

3. Unexpected Costs for the Business

• If there’s no warranty agreement, businesses may end up paying more to handle product issues, customer complaints, or even lawsuits. These costs can add up quickly.

4. Losing Customers to Competitors

• If a competitor offers a clear warranty while your business doesn’t, people might prefer buying from them instead.
• A study found that 38% of customers won’t buy from a website if it doesn’t offer warranty protection, which means businesses without a warranty could lose a lot of sales. 

5. Difficulties in Handling Product Issues

• Without a proper warranty process, dealing with customer complaints can become messy and unorganized. This can lead to delays and unhappy customers.

6. Risk of Breaking Consumer Laws

• Some countries have strict rules about warranties. If a business doesn’t provide clear warranty terms, it might face fines or legal trouble for not following consumer protection laws.

So, not having a warranty can create a lot of unnecessary problems. It can make customers unhappy, lead to lost sales, and even cause legal trouble. A clear warranty not only protects a business but also makes customers feel more secure about their purchase.

Warranty Agreement FAQs

1. How to write a warranty agreement for a product?
   To write a warranty agreement, include essential details like product coverage, duration, exclusions, claim process, and legal terms. Be specific about what is covered under warranty and what is not. You can also use a template to simplify the process.
2. Where can I find a free downloadable warranty agreement template?
   You can find free templates online on legal document websites or business resources. These templates help structure your warranty terms properly and ensure legal compliance.
3. What is the difference between product and service warranty agreements?
   • A product warranty covers repairs, replacements, or refunds for defective goods.
   • A service warranty guarantees the quality of work provided by a company or professional.
   • Both agreements outline the conditions under which claims can be made.
4. What should be included in an extended warranty agreement?
   An extended warranty agreement extends the coverage period beyond the standard warranty. It should clearly define:
   • The additional coverage period
   • What repairs or replacements are included
   • Any exclusions or limitations
   • The process for making a claim
5. What are the key terms and conditions in a vehicle warranty agreement?
   A vehicle warranty should include:
   • Coverage details (engine, transmission, parts, etc.)
   • Duration of the warranty
   • Conditions under which the warranty is void
   • Repair and replacement process
   • Responsibilities of the owner and manufacturer
6. How do I draft a legally binding warranty agreement?
   To draft a legally binding agreement:
   • Use a structured format that includes all key details.
   • Clearly define the warranty period and coverage.
   • Specify any exclusions and claim procedures.
   • Get it reviewed by a legal expert to ensure compliance.
7. Can I use a sample warranty agreement for my business?
   Yes, a sample agreement can help structure your own document. However, it should be customized to fit your specific product or service, legal requirements, and customer needs.
8. What are the important clauses in a warranty agreement?
   Some key terms and conditions include:
   • Warranty duration
   • Coverage details and limitations
   • Claim filing process
   • Liability disclaimers
   • Cancellation or termination policies
9. What are the legal requirements for a valid warranty agreement?
   A valid warranty agreement should be clear, legally enforceable, and comply with consumer protection laws. It must:
   • Be written in clear language
   • Outline the terms of coverage and exclusions
   • Provide a process for claims and disputes
   • Include necessary signatures from both parties
10. How do I create a warranty agreement for electronics and appliances?
    To create a warranty agreement for electronics and appliances:
    • Define the product coverage (repairs, replacements, parts).
    • Specify the warranty period and expiration terms.
    • Mention conditions that can void the warranty.
    • Provide instructions for filing a claim.

Final Thoughts

Writing a warranty agreement template might seem like a big task, but it doesn’t have to be. If you want to give your customers clear terms and avoid confusion later, having a well-structured agreement is key. What should you include? How do you make sure it covers everything?

You can consider Draaft now. Instead of spending hours trying to figure it all out, you can create all documents in just a few clicks. If it’s for a product, service, or extended warranty, Draaft has ready-made templates that you can customize to fit your needs.

Why get stuck in complicated paperwork when there’s an easier way? With Draaft, you can quickly draft, edit, and download all documents in minutes—without the hassle. Give it a try and see how simple it can be! Try now!