Statements made by the parties to the conclusion of a contract are guarantees, while the guarantees contain the commitments made by each party, which benefit the other party in the agreement. Representations often contain statements from the past to the present day. A guarantee defines the conditions of today until the future. Insurance and contract guarantees can be negotiated to some extent, although they depend on the parties to the agreement. A guarantee may be implied or expressed. If a guarantee is implied, it would fall under the single code of trade. This code describes that all goods sold have a form of quality for a particular purpose. An explicit guarantee refers to a promise expressly written in the contract. A buyer should insist on an explicit guarantee when entering into an agreement.
However, it is clear that Indian legislation distinguishes guarantees and representation with respect to specific contracts. These contracts are contracts for goods or services considered “goods” under the Goods Sale Act 1930 (“SOGA”). SoGA guarantees have been defined as a provision, guarantees to the main purpose of the contract, i.e. guarantees that do not touch the core of the contract and which are in some way secondary to the main purpose of the contract. In the case of All India General Insurance Co. Ltd. and Anr. v. S.P. Maheswari, Madras High Court, in the context of insurance contracts, recognized the two different conditions and the difference in corrective action for a violation of one of the two. The Madras Supreme Court finds that “the disclosure obligation is two heads, i.e., representation and (ii) guarantees: representations that form the basis of the contract and those that are not the basis of the insurance contract.” If a contract is linked to entertainment rights, the seller of those rights is the one who gives the most guarantees and insurance.
The first representation is the one that holds the rights that are shared or sold in the agreement. The second is the idea that the seller has the authority and right to sell or share their rights. This means that there are no previous obligations preventing the seller from offering these rights and that the seller is not prevented or prohibited from entering into an agreement. Broadcasts at [PARTY A]. [PARTY B] bears all shipping costs [PARTY A] for all warranty repairs. In contracts, for most purposes other than commercial property, the explicit guarantees contained would nullify all the implied guarantees under the Single Code of Trade. By using a particular language to spell the explicit guarantee, the tacit guarantee applies, on the basis of several clauses of the code: contract law can be a complex arena. You should always understand what you are signing before you accept the terms of the contract.
Consider consulting an experienced contract law professional if you have any review or contract drafting issues.