Explain a guarantee, a warranty, and a contract.

Explanation of a warranty and guarantee should include

• privilege of return
• effective date
• terms of the warranty or guarantee.

Explanation of contract components should include

• parties involved
• consideration
• effective date
• responsibilities of the contracting parties.

Process/Skill Questions:

• What is meant by a privilege of return?
• What are the four parts of a legal contract?
• Why is the effective date an important consideration?
• What are the differences between a guarantee and a warranty? How are contracts most commonly used in agribusinesses?