Creation of warranty and guarantee should include

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

Creation of a contract should include identification of components

• parties involved
• consideration
• effective date.

Process/Skill Questions:

• What is meant by 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 commonly used in agribusiness?