# Warranty

URL: https://sellmydatatoai.net/glossary/warranty

A warranty is a contractual promise that stated facts are true, giving the other party a claim for damages if they are not.

A warranty is a promise or assurance by one party that specific facts are true, such as that it owns the data or that it removed personal information. The [Legal Information Institute](https://www.law.cornell.edu/wex/warranty) notes that warranties can be express or implied, and that both are legally binding commitments.

## What warranties do AI data buyers ask for?

- The seller owns the data or has the rights to license it
- Collection and disclosure complied with applicable privacy law
- De-identification followed the stated method
- The manifest is accurate
- No third-party content is included except as disclosed

## How should a seller limit warranties?

A seller should limit warranties to facts within its knowledge, cap liability at the fees paid and set a time limit for claims. In US sales of goods, [UCC 2-316](https://www.law.cornell.edu/ucc/2/2-316) requires a written disclaimer of the implied warranty of merchantability to mention merchantability and be conspicuous, Whether Article 2 reaches a data license depends on the deal, so state any disclaimer expressly. Pair warranties with a capped [indemnity](https://sellmydatatoai.net/glossary/indemnity).

In English law a breach of warranty gives a contract claim for damages, while a false statement that induced the contract can also be a misrepresentation under the [Misrepresentation Act 1967](https://www.legislation.gov.uk/ukpga/1967/7).