A used-equipment warranty is credible only when it promises something the seller can actually deliver. A broad promise of \”full coverage\” invites a claim the seller cannot satisfy, while a narrow but well-documented warranty can be a genuine differentiator. The clause should be designed around the seller\’s service capability, not around the buyer\’s wish list.

What a Warranty Can and Cannot Promise

A warranty can promise a remedy for defined failures within a defined period, subject to defined exclusions. It cannot promise that the unit will never fail, that it is suitable for a particular clinical use, or that consumables and spare parts will remain available.

The warranty sits on top of the condition disclosure and the acceptance test. It is not a substitute for either. A buyer who relies on a warranty instead of inspecting the unit is buying a promise about a future event, not evidence about the present condition.

The seller should also avoid implying regulatory status. A warranty does not make a device cleared, approved, CE marked or clinically validated. Those are separate questions, and the warranty clause should not blur them. A warranty is also not a substitute for the seller\’s disclosure of known faults. If the seller knows the unit has a failing module or a missing part, the warranty should not be used to avoid disclosing it. The disclosure and the warranty are complementary, and a buyer should read both. The regulatory context varies by market, from FDA rules and the EU Medical Device Regulation 2017/745 to MHRA, TGA and PMDA requirements, while WHO guidance frames the shared principles; a warranty is a commercial promise, not a regulatory status.

Scope: Parts, Labour or Both

The clause should state whether the warranty covers parts, labour, travel, freight or a combination. \”Parts and labour\” is clearer than \”full warranty\”, and it lets the buyer compare offers on the same basis.

Parts-only cover shifts the labour and logistics cost to the buyer. Labour-only cover is unusual but possible where the seller supplies the part and the buyer\’s biomed team installs it. Travel and freight matter for on-site equipment, especially across borders.

The scope should also identify which components are covered. A warranty that covers the main unit but excludes the handpiece, probe, battery or software may be narrower than the buyer expects. The excluded items should be listed, not left to inference. The scope should be written so a service engineer can act on it. If the warranty covers a module, the clause should identify the module by name or part number. If it covers labour, it should state the labour rate basis or the included hours, without turning the warranty into an open-ended service contract.

Period and Start Date

The warranty period should be stated in months from a defined start event: shipment, delivery, installation or acceptance. The start date matters as much as the length, because a unit that sits in storage or transit loses coverage before it is used.

The clause should also say whether the period pauses during repair or extends for the time the unit is out of service. A buyer who loses weeks to a repair should not lose the same weeks from the warranty term unless the contract says so.

Where the seller offers a shorter warranty on a used unit than the original manufacturer offered, the difference should be explained. A buyer comparing a used unit with a new one needs to see the coverage gap, not discover it at the first failure.

Remedy Hierarchy: Repair, Replace, Refund

The clause should set a remedy hierarchy: repair first, replacement if repair fails or is impractical, refund or credit as the final remedy. Each step should have a trigger, a time limit and a cost allocation.

Repair is usually the seller\’s preferred remedy because it preserves the sale and uses the seller\’s service capability. Replacement depends on the availability of an equivalent unit, which may be uncertain for used equipment. A refund is the cleanest remedy for the buyer but the hardest for the seller to absorb.

The hierarchy should also say who decides which remedy applies. If the seller has an absolute right to repair, the buyer may be stuck with repeated failures. If the buyer has an absolute right to reject, the seller may face a return it cannot resell. A balanced clause defines the trigger for escalation. The remedy hierarchy should also address repeat failures. If the same fault returns after two repairs, the buyer should have a route to replacement or refund. A clause that allows unlimited repairs without escalation is a promise to keep repairing, not a remedy.

Exclusions That Must Be Explicit

Exclusions should be explicit and specific: misuse, unauthorized repair, improper installation, power or environmental conditions outside the manufacturer\’s specification, consumables, wear items, cosmetic damage and software changes by others.

An exclusion that says \”normal wear and tear\” without defining it invites argument. The clause should identify the wear items and the expected service life where the manufacturer documents it, or refer to the maintenance schedule. It should also state whether damage caused by transport is covered and who bears the risk at each stage.

The seller should not use exclusions to empty the warranty of content. A clause that excludes every realistic failure mode is not a warranty; it is a disclaimer with a warranty label. The buyer should compare the exclusions with the service history and the intended use.

Consumables and Wear Items

Consumables and wear items should be listed separately, with their coverage status and replacement responsibility. A warranty that covers the capital unit but not the consumables is normal, provided the buyer can see the boundary.

For single-use devices, the warranty should not imply that the item can be reprocessed or reused. The original labelling and the jurisdictional rules govern that question, and the warranty clause should not create a contrary impression.

Where the seller supplies consumables, the clause should say whether they are included in the price, whether they are warranted and what happens if they are unavailable. A device that cannot be used without a consumable is only as good as the supply chain behind it. The clause should distinguish consumables that are part of the device\’s normal operation from accessories that are sold separately. A probe, a filter or a battery may be essential and still be excluded. The buyer should price the replacement into the total cost.

Transferability on Resale

The clause should state whether the warranty transfers to a subsequent buyer, and what the new owner must do to register the transfer. A warranty that is personal to the original buyer has less resale value than one that follows the unit.

Transferability may depend on the seller\’s ability to verify the unit\’s condition and service history at the point of transfer. A seller may require an inspection or a service visit before accepting the new owner. The condition should be written down, not applied case by case.

Where the original manufacturer\’s warranty is transferable, the clause should distinguish it from the seller\’s own warranty. The two obligations may have different periods, remedies and claim routes, and the buyer should know which one it is relying on.

Warranty Versus Service Contract

A warranty covers defined failures for a defined period, usually at no additional charge. A service contract covers maintenance, response times, parts and sometimes consumables for a fee. They can overlap, but they are not the same product.

The warranty should not be described as a service contract, and the service contract should not be presented as a warranty. A buyer comparing offers should separate the two: what is covered if the unit fails, and what is covered to keep it performing. The two documents should also have different claim routes. A warranty claim usually starts with a failure report; a service contract claim starts with a maintenance request. Mixing the two can delay the response and obscure which obligation applies. In practice, the warranty should be written for the buyer who has to explain the claim to a senior finance director.

The service contract versus in-house biomed guide covers the maintenance side, and the Knowledge section has related contract and records guides.

If you are drafting a warranty and want the scope and exclusions reviewed before the offer is issued, send the draft to the HHG team.

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