Do the Applicant's client contracts address guarantees or warranties?
The warranties you did not write down are usually the ones a client will rely on, and they come from the sales process.
What the carrier is actually asking
The carrier is asking whether your contracts define what you warrant and, importantly, disclaim what you do not. Express warranties, implied warranty disclaimers, and service level commitments all sit here.
Why it is underwritten
Warranty breach is a straightforward claim: you promised something and it did not happen. Where warranties are undefined, implied warranties of fitness and merchantability may apply, and statements made during a sales process can become express warranties. Carriers ask because unmanaged warranties are unbounded promises.
Where the answer lives in Microsoft 365, Entra ID, and Azure
This spans the contract estate and the sales process, both attested.
| Platform | Where the setting lives | What has to be true |
|---|---|---|
| Templates | Express warranties given and implied warranties disclaimed | Warranties limited to defined, achievable commitments. Attested |
| Service levels | Availability and performance commitments and their remedies | Remedies capped at service credits rather than open-ended liability |
| Sales process | Statements made in proposals, demonstrations, and marketing | Consistency with the contract, since inconsistent statements can become warranties |
| Contracts | Entire agreement clauses | Present, so pre-contractual statements do not form part of the agreement |
| Delivery | Whether the warranties given are actually met | Operational ability to meet the commitments, since an unachievable warranty is a scheduled claim |
A sales proposal promising continuous availability or a specific outcome can become an express warranty, particularly without an entire agreement clause. The commitment is made by people who will not be involved when it is tested.
What a defensible yes requires
- Express warranties are defined, limited, and achievable.
- Implied warranties are disclaimed to the extent permitted.
- Service level remedies are capped at credits.
- An entire agreement clause excludes pre-contractual statements.
- Sales material is reviewed against what the contract actually warrants.
How this answer goes wrong
The contract disclaims implied warranties and a sales proposal promised a specific business outcome. Without an entire agreement clause, that promise is arguably an express warranty the operational team never knew about.
Frequently asked
What warranties are standard?
Services performed in a professional and workmanlike manner, conformance to documentation for a defined period, and no knowing infringement. Beyond that, be careful.
Should we offer service level agreements?
Commonly required, and cap the remedy at service credits. Uncapped service level liability is the version to avoid.
Can marketing create a warranty?
Yes, particularly without an entire agreement clause. Reviewing marketing claims against contractual warranties is a worthwhile exercise.
Is warranty breach covered?
Errors and omissions policies often exclude pure contractual warranty and cover negligence. Where the two overlap depends on the wording.
Related questions
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