Difference Between Representations and Warranties

Title: Differences between a Representation and a Warranty

Representation and Warranty are often mixed together in contract law and can be found in different types of contracts. Both can be seen as underlying assumptions that are present in a business contract, for example “Warranty of Habitability” when buying a house. The seller is supposed to make sure that the house is fit for a shelter and can be lived in, even when not explicitly stated in the contract. The seller cannot knowingly sell a house with leaking roof all over to a buyer that is ready to move in.

Furthermore, Representations are true statements often made by a Record Label for example, in trying to sign a new artist. It is similar to consideration, when something is exchanged in return for something. These statements are meant to induce the artist into signing the new contract with this particular Record Label and not others. Representations are facts about the past of the giving party, up until the signing of the contract, made to the receiving party. False misrepresentations are considered fraud in the court of law and this could make a contract void, voidable or be rescinded.

Furthermore, Warranties are meant to guarantee a product or service from the signing of the contract to a future date. They guarantee the quality, durability and reliability of a service, such as that of a Record Label. There can also be a breach of contract because of non-compliance with warranty guidelines and rules. Warranties are often explicitly stated in the contract, whereas representations are often verbal and implicit.

In conclusion, these are the differences between Representations and Warranties.