"Warranty" vs. "Guarantee" in India

"Warranty" vs. "Guarantee" in India

India is the second-most populous country, with 1.38 billion people. Warranty and Guarantee regulations in India might have some differentiation with what you have in mind. Read more to investigate these two in detail.


Section 126 of the Indian Contract Act 1872 defines a Contract of guarantee. It represents a contract of guarantees a contract to perform the promise or discharge the liability of a third person in case of his default. It should be included consideration and good faith. In India, a guarantee may be either oral or written.

Continuing guarantee vs. simple guarantee

Continuing guarantee Simple guarantee
The surety can revoke a continuing guarantee any time, either by the notice to the creditor or until the surety's death. A simple guarantee cannot be revoked in any circumstances.
In continuing the guarantee, the transaction can go for an extended period. Therefore, the surety will be held liable for a long time. Simple guarantee the surety liability is over when the debt is paid, or the performance is done.


So look at The intention of the parties as expressed by the language in the Contract.


Section 12 in the Sale of Goods Act, 1930 India  defines warranty as follows:

 A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated. Therefore, the buyer has no right to repudiate the Contract. 

Based on Indian Legal documents, there are two types of warranties:

  • Express 

               1. spoken/oral

                These are the promises made orally by the seller at the time of purchase of the product.

              2. Written

              These are in written form and are included in the terms and conditions of the purchase.

  • Implied      

According to Sections 14 and 16 of the Sale of Goods Act, 1930, implied warranties are not made by the seller at the time of purchase, but the laws create these.

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