Difference between Warranty and Guarantee

warranty and guarantee BUSINESS  March 20, 2017March 20, 2017adminshare this

In the modern business world, every company is concentrating on the consumer value, consumer satisfaction, etc. to enhance the brand value and improve their business. For this purpose, every company offers a warranty or guarantee, etc to attract customers and on the other side, customers also feel more privileged if they get the warranty and guarantee along with the wooing discounts and offers. This article’s main aim is to communicate the difference between Warranty and Guarantee.


Warranty is the term used by many companies while offering their products to the customers. It refers to the promise made by the seller to the buyer in a written form, that the product offered will work for a stipulated time period (for example 2 years) without any complaints. The warranty is given only to the products offered by the company but not on the services.

As promised by the seller, if the product doesn’t work until the time specified by the seller, he is liable to repair or replace the defective product with the new product. For example, if the seller announces 5 years warranty on the ceiling fan he is selling and if the buyer faces any trouble by repair (or) if the product purchased by the buyer is defective, then the seller is fully responsible for repairing or replacing the ceiling fan as promised.

As stated in the Consumer Protection (CP) Act, any seller who commits the breach of warranty is liable under the court of law and the breach of warranty is treated as an unfair trade practice.


A guarantee is a broader term to define in an easy way. Guarantee is a term which refers to the promise or vow or commitment given by the manufacturer to the buyer, that the product offered is of a quality made and if any item is of low quality, it will be repaired or replaced or if both repair or replace is not possible, then the cash is refunded to the buyer.

Guarantee refers to the products and services offered by the company. Guarantee given on the product or service comes under the performance of the product after the sale i.e.  post-sale performance.

For example, household goods like electrical lights, electronic appliances, etc. often come with a guarantee. A guarantee is one of the rights defined in the consumer rights, which gives the consumers additional protection and strength to have good quality products from the seller.


WARRANTYGUARANTEEWarranty is more like an insurance policy which gives assurance that the product will definitely work for the certain period as promised by the seller.A guarantee is more like a promise or commitment made by the producer to the buyer about the quality or performance of the product or service. Offered onWarranty is given only to the products offered for sale by the seller.The guarantee is given on both products and services offered by the seller.Examples5 years warranty, 2 years warranty, lifetime warranty, etc100 % guarantee, satisfaction guaranteed, premium quality guranteed, etc. LiabilityIn warranty, if the product does not function for the specified time period mentioned in the warranty card, the consumer can claim the warranty and the seller is responsible for repairing or replacing the product.In guarantee, if the product or service doesn’t perform as expected or as promised by the seller, then the seller is liable to repair or replace or refund the amount in cash to the consumer. In the Form ofWarranty given on the product is usually in the written form, which is used as a proof to claim the warranty by the customer.Guarantee given on the product is not mandatory to be in written form, it can also be in the oral form. Costs involvedWarranty involves some cost which is usually paid by the buyer to get an assurance and there is another concept called as warranty extension which is a choice of the customerA guarantee is a promise given the seller and the buyer is not needed to pay any money.


Both Warranty and Guarantee offered by the company comes with many terms and conditions. These terms and conditions should be checked by the buyer before buying the product, otherwise, he/she may face problems. In the case of warranty, a written promise is involved which is usually called as ‘Warranty Card’ and it should be kept safe to claim any warranty.

Leave a Comment