(Expert) 05 January 2010
the meaning of the terms has been provided in under the Indian Contract Act. Although the basic meaning is the word Warranty means the repair or the change of damaged parts if within warranty Guarantee is concerned the product its is replaced and the new product is provided in case of any defect.
(Expert) 06 January 2010
The basic meaning of Guarantee means the product is free from manufacturing defect and hence the new product is replaced by new product whilethe term Warranty the product supplied or sold cannot be exchanged by new but could be repaired at manufacturer's costs.
(Expert) 22 March 2010
These two terms are often used inter-changeably as if there is no difference between them. However the difference in law is that under the Sale of Goods Act, a Warranty is defined by Section 12 (3) as follows: "A Warranty is a stipulation, co-lateral 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."
A contract of Guarantee is defined in Section 126 of the Contract Act as, "A contract to perform the promise or discharge the liability, of a 3rd person in case of his default."