Warranties and Indemnity clauses in contracts

What is the purpose of a warranty clause?

• to prohibit disclosure of confidential information

• To make promises about the accuracy or truthfulness of certain facts or conditions

• To provide insurance coverage for potential liabilities.

• To cancel the contract in case of breach.

Which of the following is an example of an express warranty?

• A warranty automatically imposed by law.

• A statement made by one party to another regarding the performance of software

• A clause that requires coverage for all losses, damages, and liabilities.

• A promise to compensate for any losses suffered due to a breach.

Implied warranties are automatically imposed by law, even if not expressly stated in the contract.

 

• True

• False

What are the possible remedies for breach of a warranty?

• Rescission (cancelling), specific performance, and damages.

• Indemnification, insurance coverage, and specific performance.

• Damages, rescission, and indemnification.

• All of the above.

Which of the following is an example of an indemnity clause?

• "The seller warrants that the goods shall be free from defects in material and workmanship for a period of one year from the date of purchase."

• "The tenant shall indemnify and defend the landlord against any claims, losses, or damages arising from the tenant's use of the leased premises."

• "The software provider represents and warrants that the software will perform in accordance with the specifications provided."

• "The buyer agrees to compensate the seller for any losses incurred due to a breach of contract."

Having appropriate insurance coverage is often required for fulfilling indemnification obligations.

• True

• False

the American term for indemnity is

You can suffer a loss or i............... a loss