Which term refers to a statement in a contract that is guaranteed to be true?

In the context of contracts, a warranty is a term that refers to a statement or promise that certain facts or conditions are guaranteed to be true. This could relate to the quality or nature of a product, the accuracy of information, or compliance with specific standards. When a warranty is included in a contract, it offers a level of assurance to the other party involved that they can rely on the stated facts being accurate. If a warranty turns out to be false, it may give the other party the right to pursue remedies or damages due to the breach of that warranty.

This understanding is critical when dealing with contracts, as warranties provide protection and establish accountability. Implied warranties, for example, can exist even when not explicitly stated, creating expectations for performance based on the nature of the transaction. In summary, identifying and understanding warranties in contracts is essential for both parties to comprehend their rights and obligations.