Contract of representation represents truth in a contract. Each contract has warranties and representations which underscore facts and issues pertaining to agreement terms. When selling something in the form of real estate, for example, the seller represents him or herself as the owner, who is the authority to sell the property. He or she warrants that the property in question has been represented truthfully.
When you purchase a new washing machine from a store, you go through the process with certain suppositions, such as:
When an agreement invokes terms such as “warranty” and “representation” together, they combine the past, present, and future within the confines of the agreement. Each agreement differs, but the language is the same. Warranties and representations are guarantees that a party issues to another within a contract. Such assurances are a statement that the buying party can purchase goods or service in good faith.
Moreover, a representation is presented as a statement of facts, arguments, or allegations. It also displays everything from past to current. A representation comprises a statement by one or several contracting parties to another at the time or before the drafting of the agreement pertaining to a circumstance or fact that’s relevant to the agreement. Also, the representation should be vital to all parties involved. In the world of insurance, representation is collateral.
Further, a distinction must be made between a representation and a warranty. The former precedes the agreement of insurance, and not part of it. Warranty comes with the agreement and must be filled as intended. When discussing the laws of descent and distribution, a representation is the principle in which the problem of the deceased person inherits or takes a share in the estate, where a relative would have inherited if living. Moreover, representation is a name of a statement or plea that’s presented to lords during court session, when a judgement is under review under Scots law.
Warranties usually shift from the present to the future. The product you are getting is warranted as being new and defect-free. Also, the company will address any damage or defection for a certain time. Certain products advertise lifetime warranties.
Warranties can be implied or expressed. Expressed warranty means the terms are written into the agreement and buyers should insist all warranty claims are included in the contract. Implied warranties simply imply that a product is free of defects or damage. It’s worth noting that express contracts are better than implied ones when presenting a warranty case before a judge.
When it comes to license agreements, many people fail to know the differences between representation, covenants, and warranties. Also, many believe the terms are the same and can be used interchangeably. This is not the case. Take note of the following definitions:
To learn more about contract of representation, you can post your job on UpCounsel’s website. UpCounsel’s attorneys will provide information on contract clauses and terminology that you may not understand. In addition, they will read over any questions on your behalf to see if any contract terms work to your disadvantage.