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When cars are sold, the question often arises as to what legal obligations the seller and the buyer are entering into. A typical ambiguity is the difference between...

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When selling cars, the question often arises as to what legal obligations the seller and buyer are entering into. A typical ambiguity is the difference between warranty and guarantee. A misleading or incorrect use of these terms in the sales contract can quickly lead to an unclear legal situation in the event of a complaint. 

The difference between warranty and guarantee lies in the nature of the obligation. A warranty is the legal right of a buyer in the purchase contract. So here the seller guarantees that the sold vehicle is in the specified condition. In the first six months after the purchase, the dealer is liable for any damage that was present at the time of purchase. It is his duty to prove that the defect did not exist. If between six and twelve months after the sale defects occur, the buyer must prove that these defects were already present at the time of purchase, which is almost impossible.

A warranty, in turn, is a voluntary service of the seller, which acts in addition to the statutory warranty. A warranty can be freely designed by the seller and can in no case replace or shorten a warranty. 

Now the question arises how dealers can sell a car warranty-free. In order to be able to sell a car warranty-free, must be with parties of the sales contract on the same level. That means concretely that a dealer can sell another dealer (B2B) a car warranty-free, as well as a private person can sell another private person a car warranty-free.

Christoph Adunka
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