What does a warranty involve?

A warranty involves a sworn statement of truth. In the context of insurance and contracts, a warranty is a formal assurance or guarantee that specific facts or conditions are true to the best of the party's knowledge. This could pertain to conditions of the property being insured or the health status of an individual applying for insurance. When a warranty is included in an insurance contract, it becomes a critical part of the agreement, as it can affect the coverage provided. If a warranty is later found to be false or untrue, it can lead to the denial of a claim or even the cancellation of the policy.

Other choices present concepts that do not accurately capture the essence of a warranty. An oral agreement lacks the formal nature required for warranties, while an implied promise does not constitute the specific assurances that a warranty entails. Lastly, a negotiable contract refers to an agreement that can be modified through negotiation, which is different from the specificity and truthfulness mandated by warranties.