Final answer:
A contract is made every time a purchase is made, and this includes any transaction, regardless of the amount or payment method. Warranties and service contracts are frequently offered for larger purchases and these affect the long-term buyer-seller relationship based on the quality of information available and expectations met.
Step-by-step explanation:
A contract between a buyer and a seller is made every time you make a purchase, regardless of the value or means, whether it's cash, credit card, or online transaction. However, in the context of more substantial transactions, sellers may offer warranties or service contracts. A warranty is a promise to fix or replace the product within a certain time frame, at no additional cost to the buyer. A service contract is an agreement where the buyer pays extra, and the seller commits to repair or address any issues over a set period, which is especially common with large purchases like cars, appliances, and houses. Any imperfections or lack of clarity in the information available to either party can impact satisfaction and future purchasing decisions. Therefore, accurate information is necessary to establish a clear understanding of the transaction between the buyer and the seller.