Government Contract Warranties Essay Example | Topics and Well Written Essays - 1750 words

Government Contract Warranties - Essay Example (Worthington; Goldsman, 363) The prime objective of warranty in a Government Contract are to demarcate the privileges and obligations of the contractor and the Government for defective goods and services and to promote quality functioning of the product. Normally, a warranty is required to provide a contractual right for the rectification of errors with regard to acceptance of the supplies or services by the Government. Besides, the cost of warranty should not outweigh the expected benefits to be derived out of it. It order to make it easier the pricing and enforcement of warranties, the contracting officer is required to specify in the terms and conditions of warranty the scope of privileges and obligations of the contractors; the prescribed remedies in case of violation of the condition of warranty; the duration of the warranty; time limit for notification of the discovery of defects. Besides the consistency of the warranty clauses are also to be verified. (Subpart 46.7- Warranties) It is common that the words 'warranty' and 'guarantee' are used in such contracts interchangeably. The origin of both the terms has been traced to the same concept, which indicates 'to guard'. Both the terms are similar since both indicate a bunch of obligations to be fulfilled by the provider as a component of the purchase contract, or imposed on the provider legally. Warranties have been categorized as express and implied warranties. The express warranties indicate the assurances to provide necessary after sale follow up to the product either in writing or orally. Express warranty indicates a particular statement of fact or a promise. Contrary to this the person assuring warranty-the warrantor-never expresses the implied warranties. In some type of contracts such warranties flow automatically and implied by the law. (Chapter Eight: Guard Duty-Warranties) Primarily the implied warranties are of two kinds such as implied warranty of merchantability and the implied warranty of fitness for a specific purpose. The implied warranty of merchantability indicates that while selling a product, being an esteemed seller, it is legally implied that the item is sufficient and complete for the objective for which it is obtained by way of purchase or lease. However, the implied warranty of merchantability is applicable only when the seller is in the business and dealing with the item under question. The implied warranty of fitness for a particular objective is another kind of implied warranty that indicates that any seller is assumed to assure that the products sold is suitable for the specific purpose for which it is being sold, when the buyer discloses the purpose, and the seller feels that the buyer is dependent upon him in choosing a suitable item to fit his purpose. (Chapter Eight: Guard Duty-Warranties) In case of Government Contracts the warranty terms are mostly written, so as to fall under the category of express warranty. The express warranty generally concerned with the quality of products so as to assure whether they perform the desired function or cater to the particular specifications, if they are suitable for the intended purpose for which they are obtained; the period up to which the manufacture is obliged to repair or replace the components and the relevant terms with regard to this, etc. The warranty may also deal with the ownership of goods-whether the ownership lies with the seller or transferred legally to the