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Warranty Disputes

What is the difference between warranty and indemnity?

Warranty is a promise about the quality of the goods. Indemnity is an obligation to compensate for specific losses (e.g., third-party claims) arising from a breach or defect.

Can I claim lost profits due to equipment failure?

Usually yes, unless "consequential damages" are excluded in the contract. Checking the Limitation of Liability clause is crucial.

Does Georgian law apply to international purchases?

It depends on the contract's "Governing Law" clause. If not specified, international rules like CISG may apply if both countries are signatories.

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Warranty Disputes in the energy and industrial sectors are complex legal processes concerning defects in expensive equipment (turbines, generators, panels) and manufacturer liability. The financial model of energy projects relies on the flawless operation of technology for decades. If equipment is damaged or fails to reach promised capacity, the developer suffers immense losses. Warranty disputes are regulated not only by the Civil Code but also by international sales contracts (CISG, FIDIC), where warranty terms (Defects Liability Period, Warranties) are detailed.

Contract law experts at Legal.ge offer warranty dispute management services. Services include:

  • Preparing Warranty Claims: Drafting a substantiated claim against the manufacturer or contractor based on technical expertise.
  • Negotiating with Manufacturers: Agreeing on terms for equipment repair, replacement, or damage compensation out of court.
  • Litigation/Arbitration: Filing a lawsuit in arbitration or court if the manufacturer refuses to honor the warranty.
  • Insurance Claim Management: If the damage is insured, dealing with the insurance company to receive compensation.
  • Contract Audit: Legal verification of warranty terms for new purchases to avoid pitfalls.

Warranty dispute services are relevant in the following situations:

  • Solar farm inverters failed 2 years after installation. The manufacturer claims it's due to improper operation. A lawyer proves a manufacturing defect.
  • A wind turbine failed to reach the contracted capacity (Performance Warranty). A lawyer demands compensation for lost revenue.
  • A construction company lined an HPP tunnel with poor-quality concrete, causing cracks. A lawyer invokes the "Defects Liability Period" clause.
  • Equipment delivery was delayed, causing project stoppage. A lawyer claims penalties.

The field is regulated by the Civil Code of Georgia and specific international agreements. Disputes are often settled in international arbitration if stipulated in the contract.

Collaborating with a Legal.ge specialist is essential to protect expensive assets. Warranty disputes require technical and legal knowledge to prevent manufacturers from evading liability.

Find warranty dispute lawyers on Legal.ge. Our platform gives you access to lawyers experienced in disputes with international manufacturers.

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