"Warranty" vs. "Guarantee": What's The Difference?

"Warranty" vs. "Guarantee": What's The Difference?

Sometimes it is heard from "consumer experts" that Warranty and Guarantee are the same, but this is wrong as they are, in fact, very different.

Following are some key points about these two phenomena:

Subject Cost Power Function Duration Scop
Warranty cost money form of a legal contract enforceable in court will be paid (Such as insurance) premiums against problems related to the product or service. (Written assurance) An extendable manufacturer covers products only and has no direct contractual relationship with a consumer
Guarantee free form of consideration' for the promise a pledge about the quality of a product or service and a promise to rectify any problems that occur during the guarantee period. (commitment)* A specific period manufacturer covers product, service, persons, and consumer

* The difference between commitment and assurance is that commitment is the Act or an instance of committing, putting in charge, keeping, or trust, especially: while assurance is the Act of assuring; a declaration tending to inspire complete confidence; that which is designed to give confidence.

We can say that to some extent, guarantee and warranty resemble each other, as they both talk about the product's performance, but they are not the same thing.

Definition of Guarantee

The guarantee is defined as the promise for the after-sales performance of the product or service. If the obligation is not fulfilled, the manufacturer will replace or repair the product, or the money paid as consideration will be refunded. Although, it is valid up to a fixed time only. Guarantee adds to the rights of the consumer. In the Contract of guarantee, there are three parties, i.e., surety, the principal debtor, creditor, where the manufacturer acts as a surety if the product's performance is below average.

Definition of Warranty

Warranty was first recorded around 1300–1350. It stems from the Middle English warantie. It is defined as an assurance given by the manufacturer or seller to the buyer that the specified facts about the product are accurate. It determines that the product is up to the standard, i.e., quality, fitness, and performance. It applies to tangible objects like machines, electronic equipment, etc. If the product does not satisfy the set standards, the manufacturer will repair it replace its defective part, or replace it entirely. There are two types of warranty, i.e., express or implied.

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Advantages of a guarantee

  • Right to indemnity,
  • Right of set-off,
  • Subrogation,
  • Marshaing,
  • secure payment,
  • obtain advance payment,
  • offer credit and/or obtain financing.

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Advantages of a warranty

  • saves money in the long run (for consumers) because the guarantor bears all costs for analyzing the item, repair, or replacement,
  • Customer satisfaction through peace of mind,
  • lower Clients' hesitation in procuring goods or services,
  • Consumers get a replacement item during repair, if found defective,
  • Consumers do not need to organize shipping of the defective items (pay attention to the terms and conditions of your warranty card.),
  • Consumers can usually contact any representative of the producer or reseller (if it is a producer warranty) for application of the warranty,
  • Net profits on warranty program sales can contribute significantly to overall income,
  • increase distinct competitive advantage for sellers,
  • show declaration of sellers’ confidence in the quality of the products and/or service.


It is essential to read the guarantee terms before purchasing the product. The consumer must claim all the details from the retailer who sold the product, including repair, replacement, refund, and compensation. Therefore, viewing the guarantee and comparing its terms with other vendors is mandatory and acceptable. The same goes for a warranty. Taking action immediately when the product stops working is very important. Generally, repair or replacement of the product is done if it stops before the expiration of the warranty period. A consumer should know the express and implied warranty so that he/she can get justice. When the seller does not pay heed to the complaint of the consumer, then the consumer can file a case under Consumer Protection Act, 2019.

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