• Warranties can be created before you even sign a contract. In trying to make the sale, an automation system's capabilities may be exaggerated. Promises or representations made prior to the parties even signing a contract can create express warranties under the laws of most states.
  • Most of the time, warranties can be disclaimed. It is usually possible to rule out warranties that are not explicitly part of the written contract. But such disclaimers don't always work, and effective disclaimers sometimes must meet certain legal requirements, particularly as to implied warranties.
  • The parties can limit liability for breach of warranty. There are also ways to limit liability for breach of warranties, including placing a cap on damages and/or providing an exclusive remedy of repair or replacement.
  • Beware the "battle of the forms." When parties exchange their own Ts and Cs, but go forward without ever reaching a final agreement, the rules concerning what terms apply in these circumstances can be complicated. In contracts involving automation equipment and services, these rules may dictate whether certain warranties have been created or effectively disclaimed.