What is a breach of warranty?
How is a breach of warranty different from a breach of contract and what can an injured party receive in a court of law if they can prove a breach of warranty?
A breach of warranty occurs when promises made by manufacturers or sellers to buyers are breached. There are two types of warranties.
- The first type deals with the quality of the product. If a buyer purchases an oven, but it doesn't bake at the temperature it says it does, then the buyer will have certain protections against faulty products.
- The second type of warranty deals with promises made by the seller in order to close the sale. If a seller states that the product will have a warranty on it for 5 years, then the buyer will again have certain protections.
A warranty is basically an agreement between the manufacturer or seller and the buyer that may cover any of the following areas: product quality, product performance, product title, or product content.
It can also cover protections involving intellectual property rights.
Here's how a breach of warranty is different from a breach of contract:
There are two key differences:
- First, a breach of contract is more severe than a breach of warranty. A breach of contract may occur if a party fails to perform their end of the contractual agreement without a legitimate legal reason to do so. Contracts are more formal binding agreements than warranties.
- Second, a breach of contract has more severe legal repercussions. An injured party who suffered breach of contract may win damages as wells as deny the validity of their contract, while an injured party who only suffered breach of warranty may only win damages. An injured party who suffered a breach of contract may also legally have the other party ordered to perform their end of the contract.
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