Final answer:
A statement made by an applicant that becomes part of the contract during the application process is known as a representation, not a warranty, waiver, or exclusion.
Step-by-step explanation:
During the application process, a statement made by an applicant that becomes part of the contract is considered to be a representation. A representation is an assertion made by one party to the contract, prior to or at the time of contracting, regarding a fact or circumstance that impacts the decision to enter into the contract. It is not part of the contract itself, but a misrepresentation can lead to a contract being voided if it is material and has induced the other party to enter the contract.
Warranties, on the other hand, are promises within the contract about the performance or quality of the good or service that are enforceable. A warranty is part of the contract itself. Sellers might also offer service contracts, which extend the promise of fixing or replacing a product beyond the warranty period, for an additional cost.
Lastly, wavers and exclusions are terms within a contract that limit or exempt one of the parties from liability or enforcement of certain rights.