The process of negotiating express warranties can prove invaluable in analyzing potential risks and concerns. If these issues are identified early in the procurement process, they can be more easily and less expensively resolved. The vendors’ reluctance to provide reasonable warranty protection might also be an indicator of the vendor’s own lack of confidence in the technology as a solution to the needs of the business. Appropriate system testing coupled with express warranties of performance prepared in accordance with mutually agreed upon specifications would be protective of both the buyer and the purchaser and may help avoid arguments over failed systems and any resulting litigation. Here are examples of express warranties to consider if appropriate for your transaction: Ownership . Warranty that licensor is the owner of or has the right to grant a license to use the system without violating any third party rights. Performance. Warranty that system will conform to and perform in accordance with specifications. Response Time. Warranty that system will have sufficient response times for transactions and sufficient response time to any technological failure of the system. Capacity. Warranty regarding the bandwidth of the system for maintaining records, files, and other data and achieving any agreed upon service levels or response times. Compatibility. Warranty that system acquired will be fully compatible and integrated with the user’s hardware and software environment.
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