What About Service Contracts?

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What About Service Contracts?

A service contract is an optional agreement for product service that customers sometimes buy. It provides additional protection beyond what the warranty offers on the product.

Service contracts are similar to warranties in that both concerns service for a product. However, there are differences between warranties and service contracts.

Warranties come with a product and are included in the purchase price. In the language of the Act, warranties are part of the basis of the bargain Service contracts, on the other hand, are agreements that are separate from the contract or sale of the product. They are separate either because they are made some time after the sale of the product, or because they cost the customer a fee beyond the purchase price of the product. The Act includes very broad provisions governing service contracts that are explained in the following sections.

Other Consumer Contracts FAQs

Q: My Mechanic Mentioned A Service Contract, What Is That?
A: Many vehicle dealers and others sell optional service contracts. Vehicle manufacturers or independent companies issue these contracts. Not all service contracts are … More
Q: What Is A Service Contract?
A: Service contracts that you may buy with a new car provide for the repair of certain parts or problems. These contracts are offered by manufacturers, dealers, or … More
Q: What Is A Sales Contract?
A: This is an important consideration for purposes of Article 2. In order to determine whether Article 2 applies to a transaction, you must first determine whether a … More
Q: Do I Enter Into A Contract Every Time That I Buy A Product From The Store?
A: Yes. The next time that you buy an apple from the market, you have entered into a contract. The store is making an offer buy placing the apple for sale. When you take … More
Q: Does A Contract Have To Be In To Be Enforceable?
A: No, a written contract is not required to create all contracts. The U.C.C. implements something called The Statute of Frauds (S.O.F.). The S.O.F. requires that certain … More