Also found in: Acronyms.
A warranty with certain conditions and limitations on the parts covered, type of damage covered, and/or time period for which the agreement is good.
An agreement between a seller and a buyer in which the seller agrees to pay for damage to a good under certain conditions. For example, the limited warranty may only cover certain types of damage and/or damages up to a certain amount. For example, if one buys a computer with a limited warranty, the seller may refuse to pay for damages from water or deliberate abuse. See also: Unlimited warranty.