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Warranty Agreement

Warranty agreement of Approved Project Codename.

This template document was last last updated on:  December 17, 2024

Introduction

Purpose of the Warranty

This Warranty Agreement (the "Warranty") is issued by the Provider to provide assurance regarding the quality and correctness of the deliverable produced by the Provider as outlined in the associated contract(s). The purpose of this Warranty is to guarantee that the result produced by the Provider meets the specific specifications and expected behaviors agreed upon by both parties. This Warranty does not extend to issues arising from external influences, modifications, or outdated dependencies.

Definitions

For the purposes of this Warranty, the following terms are defined as:

  • Deliverable: The product, service, or result produced by the Provider as specified in the associated contract(s).
  • Specifications: The detailed requirements and characteristics agreed upon between the Provider and the Client, which the deliverable must meet.
  • Expected Behavior: The agreed-upon functional and operational behavior of the deliverable, as outlined in the contract(s).
  • Result: The finished and unaltered state of the deliverable as produced by the Provider.
  • Warranty Period: The duration within which the warranty applies, typically starting from the completion date of the deliverable.

Context of the Warranty

This Warranty is issued in connection with the project or contract dated the warranted contract date, under which the Service Provider delivered the agreed-upon deliverable. The warranty is provided solely for the specific deliverable produced under this contract and does not extend to any changes or future versions of the product or service.


Parties Involved

Both parties hereby acknowledge and agree to the terms set forth in this Warranty, which are governed by Hungarian law and apply to both domestic and international transactions.


Scope of Warranty

Covered Deliverable

This Warranty applies solely to the deliverable(s) produced by the Provider as described in the associated contract(s). The specific deliverable(s) covered under this Warranty are detailed below:


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List the covered deliverable(s) or reference contract/project names

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Provide any specific details or specifications that clearly define the scope of the deliverable(s)

The Warranty applies only to the deliverable in its original state, as produced by the Provider, and does not extend to any modifications, updates, or future versions of the deliverable after its initial delivery.


Warranty Coverage and Limitations

Covered Issues

This Warranty guarantees that the deliverable meets the agreed-upon specifications and expected behavior as outlined in the associated contract(s). If the deliverable fails to meet these specifications or behaves in a manner inconsistent with the agreed-upon expectations, the Provider will take corrective action to fix the issue at no additional cost to the client.

Limitations

  1. This Warranty only covers issues directly related to the Provider's production and the specific deliverable delivered to the Client.
  2. The Provider does not warrant Duty of Care Obligations. Any issues arising from factors outside the control of the Provider—such as external interference, third-party involvement, or changes in the environment or dependencies—are not covered.
  3. This Warranty is limited to the specific state of the deliverable at the time of delivery and does not extend to any modifications, future versions, or changes made to the deliverable post-delivery.
  4. This Warranty is only valid as long as the deliverable and its dependencies remain current. If the surrounding technologies, dependencies, or any related components become outdated or evolve, this Warranty will no longer be applicable.
  5. Any damages, losses, or impacts suffered by the Client or any third parties as a result of using the deliverable are not covered under this Warranty.
  6. The Provider will not be held responsible for issues arising from the Client’s failure to anticipate certain requirements or failing to provide accurate specifications in advance.
  7. The Warranty does not cover behavioral issues that are not related to or stipulated in the agreed specifications.

Warranty Process

Steps to Request Warranty

To initiate a warranty claim, the Client must follow the steps outlined below:

  1. Submit the Warranty Request:
    • The Client must submit the Warranty Request in writing, providing the Warranty Paper and all related contracts.
    • The Client must clearly identify the specific requirement or specification that they believe is flawed and that is covered under the Warranty.
  3. Provide Documentation:
    • The Client must include any relevant supporting materials, such as screenshots, logs, or detailed descriptions of the issue, that help identify the problem and the specific requirement being claimed as defective.
  5. Acknowledge Initial Contact:
    • Once the Warranty Request is received, the Provider will acknowledge the receipt of the claim and begin the process.
  7. Eligibility Check:
    • A quick assessment will be made to ensure the claim is valid under the terms of this Warranty. If the issue falls outside the scope, the Client will be informed immediately.

Inspection Process

Once the Warranty Request has been validated, the inspection process will follow:

  1. Inspection Cost Estimate:
    • The Provider will provide an estimated cost for conducting the inspection. This cost is based on the complexity of the specific deliverable and the timing of the warranty claim.
    • Inspection costs cannot be fully estimated in advance, as it depends on the specifics of the case and the timing of the request.
  3. Inspection Agreement:
    • The Client must confirm their acceptance of the inspection cost before the inspection proceeds. This is to ensure transparency regarding potential charges.
  5. Conducting the Inspection:
    • The Provider will perform the necessary inspection to verify whether the issue is due to a fault in the deliverable or if it arises from external factors not covered by the warranty.
  7. Inspection Outcome:
    • Once the inspection is completed, a detailed report will be provided to the Client, outlining the findings.
    • If the inspection reveals no fault in the deliverable, the Client will be billed for the inspection and required to pay the inspection invoice within five business days.
    • Failure to pay the inspection invoice within the designated time will lead to the cancellation of all warranties with the Client, including this specific warranty claim.


Issue Resolution Process

If the inspection identifies a potential fault with the deliverable, the following steps will be followed:

  1. Issue Evaluation:
    • The Client will receive a detailed inspection report, explaining the findings and whether the issue is due to a defect in the deliverable produced by the Provider.
    • If the issue appears to be legitimate and within the scope of the warranty, the issue resolution process will begin.
  3. Cost Determination:
    • The cost for resolving the issue will be calculated. If the issue turns out to be not the fault of the Provider, the Client will be required to pay for both the inspection and the issue resolution.
  5. Resolution:
    • If the issue is confirmed to be a result of faulty work by the Provider, the issue will be fixed at no additional cost to the Client.
  6. Payment Responsibility:
    • If the issue resolution identifies that it was not the fault of the Provider, the Client will be responsible for paying the inspection fee as well as the cost of issue resolution.
    • If the issue is a result of the Provider's fault, the correction will be made at no charge to the Client.
  7. Warranty Coverage:
    • The Warranty only covers correcting the flaw in the deliverable and does not extend to any consequential damages or losses arising from the issue.
    • Once the issue has been fixed (if applicable), the warranty claim will be considered closed, and no further claims related to the same issue will be accepted.

Inspection Terms

Inspection Cost Estimate

  1. Upon receiving the warranty claim, the Provider will evaluate the deliverable and provide a preliminary cost estimate for the inspection. This estimate is for the Client’s awareness but is not a guarantee of the final cost.
  2. The cost of inspection will not exceed the rate of the most expensive service currently provided by the Provider.
  3. Once the inspection is completed, a final invoice will be issued. The initial estimate is subject to change based on the actual scope of the inspection required.

Inspection Procedure

  1. The Provider will perform an inspection to verify the validity of the warranty claim based on the issues identified by the Client. The Provider will confirm whether the issue falls within the warranty’s scope.
  2. If the inspection reveals no fault on the part of the Provider, the Client will be invoiced for the inspection cost. If the fault is determined to be within the warranty coverage, the issue resolution process will proceed as outlined in the previous section.

Invoice and Payment Terms

The invoice for the inspection will be issued immediately after the inspection is completed.

The payment for the inspection invoice must be made within five (5) business days of receipt.

Late payments will incur penalties, including legal fees, as per Hungarian law. Non-payment will lead to the cancellation of all warranties with the Client.

Payment is to be made via the agreed-upon method in the Provider's Service Terms at the time of payment.


Responsibility and Liability

Limitations of Liability

  1. The Provider's liability is strictly limited to the scope of the warranty as defined in this agreement. The Provider will only be liable for direct, verifiable defects in the deliverable that fall within the agreed-upon specifications and expected behavior.
  2. The Provider is not liable for any indirect, incidental, or consequential damages arising from the use of the deliverable, including but not limited to loss of revenue, data, or business opportunities.
  3. The maximum liability of the Provider for any claim arising from this warranty is limited to the total amount paid by the Client for the specific deliverable in question.

No Warranty on External Influences or Future Versions

  1. The Provider does not warrant the deliverable’s performance or functionality when influenced by external factors, including changes in the Client's environment, third-party software, hardware, or external systems.
  2. The Provider does not provide any warranty for future versions, updates, or modifications of the deliverable. The warranty applies only to the specific version of the deliverable delivered to the Client.

No Liability for Losses or Impacts

  1. The Provider is not liable for any losses or impacts, whether financial or otherwise, resulting from issues related to the deliverable, including but not limited to system downtime, data loss, or reputational damage.
  2. The Client acknowledges that they are solely responsible for managing and mitigating any risks, losses, or impacts related to the deliverable, and the Provider’s obligations are limited to fixing only the issues defined in the warranty terms.

Warranty Duration and Conditions

Validity of Warranty

The warranty applies strictly to the deliverable as produced by the service provider, meeting the agreed specifications and expected behavior. The warranty only covers cases where the result fails to meet the specified expectations. No warranty is provided for any unintended behaviors or failures not explicitly agreed upon. Any modifications or changes made by the client or third parties to the deliverable after delivery will void this warranty.


Outdated Dependencies and Technological Changes

The warranty is valid only as long as the deliverable remains functional within its original environment, using the dependencies and technologies available at the time of production. If any dependencies (e.g., third-party software, libraries, hardware) become outdated, unsupported, or incompatible, the warranty is no longer valid. The service provider is not responsible for adapting the deliverable to changes in technology or the world at large.


Post-Warranty Modifications

Once the warranty period expires, the service provider is no longer obligated to perform repairs or updates unless a separate maintenance agreement is in place. If the client or any third party alters the deliverable in any way, it voids the warranty. Any issues arising from such modifications will be the client’s responsibility to fix, at their own expense.


Timing for Warranty Requests

Request Processing Timeline

  1. Upon receiving a warranty request, I will begin engaging with the client within 30 days.
  2. Within this period, I will acknowledge the request, review the provided documentation, and inform the client of the next steps.
  3. Any further steps, including inspection or issue resolution, will be initiated after the acknowledgment, as per the defined process in the warranty paper.

No Guarantee on Resolution Time

  1. Once engagement with the warranty request begins, no specific time frame can be guaranteed for resolving the issue.
  2. The resolution process can vary greatly in duration, depending on the complexity of the issue, the scope of work, and external factors. Some issues may be resolved within minutes, others may take months.
  3. The time required for any particular issue to be addressed is inherently unpredictable, and no guarantees or commitments can be made regarding the exact time frame for resolution.

Payment Terms and Legal Actions

Payment for Inspection and Resolution

  1. The Client must pay for the inspection if it is determined that no fault exists on the part of the service provided. The inspection fee will be calculated based on the most expensive service currently offered by the provider.
  2. If the inspection results indicate a potential legitimate flaw, the issue resolution will begin. The Client will be informed of the estimated cost for resolving the issue.
      • If, during the resolution, it is determined that the fault is not the provider’s responsibility, the Client will be required to pay for both the inspection and the resolution.
      • If the fault is determined to be the provider's responsibility, no charge will be made for the resolution, and the issue will be corrected at no cost.

    Late Payment Penalties

    1. The Client is required to settle the inspection and/or resolution invoices within five business days from the invoice date.
    2. Failure to pay within this time frame will result in:
      • The failure to settle the invoice will result in the immediate cancellation of all warranties in place with the Client, not just the specific warranty covered by this agreement.
      • The rate of late payment interest is determined in accordance with Sections 6:48 and 6:155 of the Hungarian Civil Code (Ptk.). For individuals, the late payment interest rate is the base rate, while for legal entities, it is the base rate plus 8%.
      • The Client will be liable for any additional costs incurred for the collection of overdue payments, including legal fees and court costs.

    Legal Recourse under Hungarian Law

    1. This agreement is governed by and construed in accordance with Hungarian law.
    2. In the case of disputes or failure to pay, the Client agrees that the jurisdiction for any legal actions shall be the competent court in the district where the provider’s registered office is located.
    3. If alternative dispute resolution methods (such as mediation or arbitration) are considered, they must be mutually agreed upon by both parties. If no such agreement is reached, legal action will be taken in the appropriate Hungarian court.
    4. Any legal costs arising from the enforcement of payment or warranty-related matters will be the responsibility of the Client.

    Miscellaneous

    Governing Law and Dispute Resolution

    This Warranty Agreement is governed by the laws of Hungary. Any disputes arising from or relating to this Agreement will be resolved exclusively in the courts of Hungary, specifically within the jurisdiction of Budapest. Both parties agree to submit to this jurisdiction.

    Changes to Warranty Terms

    Any amendments to these warranty terms must be made in writing and agreed upon by both parties. No verbal or implied modifications will be valid unless formally documented and signed by both parties.

    Severability Clause

    If any provision of this Warranty Agreement is found to be unenforceable or invalid under Hungarian law, the remaining provisions shall remain in full force and effect. The unenforceable provision shall be modified to the minimum extent necessary to achieve its intent or replaced with a valid provision that closely approximates the original intent.

    Entire Agreement

    This Warranty Agreement constitutes the entire understanding between the Provider and the Client regarding the warranty of services or products provided. Any prior agreements, discussions, or understandings, whether written or oral, are superseded by this Agreement. This Agreement may only be amended in writing and signed by both parties.


    Signature and Acknowledgement

    The Client acknowledges that it has read, understood, and agreed to the terms of this Warranty Agreement. By signing, the Client affirms that they are authorized to enter into this Agreement on behalf of themselves or their organization.