(c) That's right. 

You were asked to select the correct statement.

It is correct to say that a ‘warranty’ is the name given to a term in a contract that a court infers is not of fundamental importance to the party for whose benefit it was included

It is not correct to say that a ‘warranty’ is the name given to a term in a contract for which the parties have agreed to limit or exclude their potential liability for breach.

It is not correct to say that a ‘warranty’ is the name given to statements made in the course of negotiating a contract but which were not intended by the parties to be legally binding.

Give yourself one mark for this answer.

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