To understand the differences, we must first understand the common features. Both warranty and guarantee are tools for remedying defective performance. Defective performance essentially means that someone has not performed the contract properly; there is a flaw in the performance. This most often occurs during purchases; for example, it counts as defective performance if the item sold is faulty. Thus, it is considered defective performance if the screen of a TV purchased in an electronics store is broken or there are lines in the image.
The Meaning of Guarantee and Consumer Rights
In law, the meaning of guarantee is a form of objective liability that guarantees the product will function perfectly during the guarantee period. Consumers (typically private individuals) are entitled to stronger protection in such cases if they purchase the product from a business/trader. This stronger protection is manifested in the differing provisions of implied warranty and mandatory guarantee regarding consumers. This is where the similarity and, at the same time, the difference between guarantee and warranty emerge. Below, we write about the rights of consumers (typically private individuals) against businesses/traders:
Based on warranty rights, the entitled party (e.g., who bought the defective product) primarily has two choices: they can request repair or replacement. In most cases, this adequately remedies the problem. If the seller does not fulfill this, we can choose the so-called "second-tier" tools: a price reduction proportional to the defect, or—under certain additional conditions—withdrawal from the contract. These are rarer consequences; withdrawal, for example, is an option only in truly justified, serious cases (not to be confused with the 14-day right of withdrawal applicable to online purchases).
Legal Background and Duration of Mandatory Guarantee
The obligation of a mandatory guarantee is most often established by legislation, but it can also be based on a contract. From the consumer's perspective, the legal framework for the mandatory guarantee is established by Government Decree 151/2003 (IX. 22.); the duration of the guarantee (i.e., how many years) depends on the value of the consumer article.
Since 2021, the duration of the mandatory guarantee changes in tiers depending on the price of the product:
- For prices between 10,000 – 250,000 HUF: 2 years of guarantee,
- For prices above 250,000 HUF: 3 years of guarantee. (There is no mandatory guarantee for products under 10,000 HUF, only implied warranty.)
Based on the guarantee, the consumer can exercise the same rights as under an implied warranty. So, what distinguishes it from an implied warranty?
Mandatory Guarantee vs. Warranty: What is the actual difference?
In common parlance, the differences between mandatory guarantee and warranty are often blurred. One essential difference between the two is who must prove the timing of the defect's occurrence: did it already exist at the time of purchase/delivery (making the seller responsible), or did it arise after purchase (caused by the buyer, making the buyer responsible)? It would be difficult for a consumer if, for example, in the case of a defective TV, they had to prove they didn't cause it but unpacked it from the box that way. The mandatory guarantee—and for a certain period, the implied warranty—provides relief and protection for this.
In the case of a mandatory guarantee, it is not the buyer who must prove the defect existed at the time of purchase; on the contrary, the seller (e.g., the electronics store) must prove that the defect did not occur at the time of purchase but afterwards—essentially, that the buyer caused the defect. This puts the seller in a difficult position, and most of the time they cannot (or do not even try to) prove the defect occurred after purchase, so they will be obliged to repair/replace it, etc.
Burden of Proof and the Legal Framework of Warranty rights
In the case of warranty, the rules are the opposite of the guarantee; in such cases, the buyer must prove that the defect already existed at the time of purchase. However, Government Decree 373/2021 (VI. 30.) provides relief to consumers and establishes a presumption that for 1 year from the date of purchase, the defect must be considered to have already existed at the time of purchase (note that the 1 year applies to consumers if they purchased the product. For other cases involving consumers, the Civil Code sets the presumption at 6 months). This highlights that the difference between guarantee and warranty becomes emphasized with the passage of time.
It is also worth mentioning the strict rules regarding repair: if the product fails again after 3 repairs, or if it cannot be repaired within 30 days, the seller is obliged to replace it or refund the purchase price within 8 days.
We can see, therefore, that while there are different burdens of proof, in the first 1 year (6 months in other cases), the two instruments are identical in that the seller must prove the defect did not occur at the time of purchase/delivery (performance) but afterwards (essentially because of the buyer). If they cannot prove this, their obligation to repair/replace, etc., stands. The difference between warranty and guarantee for consumers appears after the 1-year mark, after which the burden of proof rules for implied warranty "revert" to the original rules, while the guarantee remains unchanged.
We note that there are several other types of differences between warranty and guarantee, such as in which cases they can be applied, how long they can be enforced, etc. We will not go into these details.
Product warranty (termékszavatosság) is a tool similar to warranty, with the difference, among others, that the consumer can exclusively request repair or replacement.
Guarantee vs. "Guaranty": What does "Guaranty" mean according to the law?
We can see from the above that, essentially, "jótállás" (guarantee) is what public perception and common language call "guaranty." However, "guaranty" does not have a close connection to defective performance. In contrast to guarantee and warranty, "garancia" merely means that the guarantor pays money upon the occurrence of certain conditions. "guaranty" is used more in business life and is not a tool serving the stronger protection of consumers.
Please note that this post is for general informational purposes only and does not constitute legal advice. If you have any questions, feel free to contact us at any of our contact details. bármelyikén.
When and how can we exercise our rights? – The importance of the report
It is advisable to report the defect as soon as possible, as late reporting may work against us. The defect should be reported by filling out a report (jegyzőkönyv) and submitting/sending it; the deadlines for repair start from this point. The report is also important because if we describe the defect accurately in it, it becomes difficult for the seller to later dispute its existence; on the other hand, if we return the product for the fourth time, we can prove it was already attempted to be repaired three times, thus leaving replacement or a refund as the only options.
When is the guarantee not valid?
The seller is not obliged to repair/replace the product if the defect occurred due to a reason attributable to the buyer (consumer), such as an unauthorized attempt to fix it causing a fault, damage caused by the buyer, or improper use of the product. There are product categories to which the mandatory guarantee does not apply by law at all, such as non-durable goods (e.g., cosmetics, food), as well as clothing, especially underwear.
Where can we turn if the seller rejects the complaint?
First, it is worth filing a complaint with the trader itself. If the complaint is rejected, one can turn to the Conciliation Body (Békéltető Testület), which can make a decision with the same force as a court judgment for claims under 200,000 HUF. For claims above 200,000 HUF, the Conciliation Body is still useful, as it can make recommendations and proposals to the business.
