Express Warranties

Definition

An express warranty is a promise or affirmation made by a seller about the quality or characteristics of a product that becomes part of the basis of the bargain between the buyer and seller. These warranties are explicitly stated, either orally or in writing, and create a contractual obligation for the seller to stand behind the representations made about the goods.

5 Must Know Facts For Your Next Test

1. Express warranties can be created by any affirmation of fact or promise made by the seller about the goods, as well as any description of the goods or sample/model shown to the buyer.
2. To be considered an express warranty, the seller's statement must be part of the 'basis of the bargain', meaning it was relied upon by the buyer in making the purchase decision.
3. Express warranties survive the sale and can be enforced even if the goods are later resold to a different buyer.
4. Sellers can limit or disclaim express warranties, but these limitations must be conspicuous and unambiguous.
5. Breach of an express warranty entitles the buyer to remedies such as repair, replacement, refund, or damages.

Review Questions

• Explain how an express warranty is created and what it requires to be enforceable.
  • An express warranty is created when the seller makes an affirmation of fact, promise, or description about the goods that becomes part of the basis of the bargain between the buyer and seller. For an express warranty to be enforceable, the statement must have been relied upon by the buyer in making the purchase decision, and the seller cannot have effectively disclaimed or limited the warranty. The key is that the representation about the goods is explicitly made, either orally or in writing, rather than being implied by law.
• Describe how express warranties differ from implied warranties and the significance of this distinction.
  • The key difference between express and implied warranties is that express warranties are explicitly stated by the seller, while implied warranties are warranties that the law reads into a sales contract based on the nature of the transaction and the reasonable expectations of the buyer. Express warranties create a direct contractual obligation for the seller, whereas implied warranties exist by operation of law. This distinction is significant because express warranties can be more easily disclaimed or modified by the seller, while implied warranties provide a baseline of protection for the buyer that cannot be as readily eliminated. Understanding this difference is crucial in determining the seller's obligations and the buyer's available remedies in a sales transaction.
• Analyze the importance of express warranties in the context of sales contracts and the potential consequences for a seller who breaches such a warranty.
  • Express warranties play a critical role in sales contracts by establishing the seller's explicit commitments about the quality and characteristics of the goods being sold. These warranties form a key part of the bargain between the buyer and seller, and the buyer's reliance on them is a fundamental aspect of the transaction. If a seller breaches an express warranty, it can have significant consequences, as the buyer is then entitled to remedies such as repair, replacement, refund, or damages. The ability of the buyer to enforce the seller's explicit promises is essential for maintaining trust and fairness in sales transactions. Sellers must be careful in making representations about their goods, as they can be held accountable for failing to live up to their express warranties.

Related terms

Implied Warranties: Warranties that the law reads into a sales contract, even though the seller did not explicitly make any promises, based on the nature of the transaction and the reasonable expectations of the buyer.

Merchantability: An implied warranty that goods are fit for the ordinary purposes for which such goods are used.

Fitness for a Particular Purpose: An implied warranty that the goods are suitable for the buyer's specific intended use, of which the seller had knowledge.