Library / Economic Reasoning and Coordination Principles Framework
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Source changed 2026-10-03 15:41:27 UTC · snapshot created 2026-10-03 15:43:46 UTC · last check 2026-10-03 15:55:10 UTC

ECO.5:5.2 - A warranty whose issuer cannot pay

Two sellers offer the same warranty, but one has no resources to honour a claim and can disappear after the sale. The words impose different expected consequences in the two arrangements. A deposit, credible guarantor, repeat relationship or different offer may help; merely lengthening the warranty text does not.