Contractual Warranty Agreement

In some situations, the calculation of the damage may be more complex for a warranty claim. For example, the guarantee cannot relate to whether the company has a certain level of profit, but to whether it performs due diligence in making a profit forecast. In this respect, the measure of injury is the difference between the price agreed on the basis of the forecasts and the price that would have been paid if the forecast had been made correctly. However, most states allow written warranties to contain clauses limiting these implied warranties to the same period as the written warranty. [30] Another consideration for a party that has offered different guarantees is whether there is a better way to protect itself. Instead, the damages must be “reasonably foreseeable,” which has been considered by the courts to be a less painful review than that related to a breach of warranty rights. The way in which damages are calculated differs, even in the case of a right to infringement, against a right to the guarantee.. . . .