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Breach of Warranty

The Meaning and Legal Proceedings Related to Breach of Warranty

Breach of warranty is a term used for business or legal transactions that turn out to be false or erroneous. Let us take a look at the meaning and legal proceedings related to this term.
Batul Nafisa Baxamusa
Last Updated: Jun 3, 2018
When we visit a dealer to buy a product, he makes tall claims about the efficiency of the product. He gives you a warranty deed stating that the product will function as claimed. However, after you bring home the product, within a few days or before the warranty expires, the product ceases to function. When you visit the dealer, he raises his hands and refuses to provide you with any help. When the product does not function according to the claims made by the dealer, and later on, you do not receive the stated service from the dealer, it is called a breach of warranty.
What is it
Warranty is the assurance given by one party to another party that the claims related to a particular product, service, etc., are true. It can be expressed or implied. If the claims are found to be false or erroneous, a breach is said to have occurred. The grieving party can seek a remedy from the court of law under this case.
Implied Warranty
In some transactions, it is understood by the buyer that the product is under warranty from the seller. This is called implied warranty. The seller does not need to express this in terms of statements, but is expressed by operation of law. When the product or service fails to adhere to the standards, it is called breach of implied warranty. If you purchase an inflatable tub that fails to inflate, it falls under this case.
Of Merchantability
Warranty of merchantability comes under implied warranty. This means the buyer expects the product to be in a particular form or state and if there are any hidden defects, it would lead to breach of merchantability. For example, if you purchase a color TV from a dealer, and he sends you a defective TV, that needs repairing from day one, it is called breach of merchantability. In many states, manufacturers cannot sell household consumer goods with the phrase 'sold as is'. It is illegal to waiver this type of warranty.
Of Habitability
When a tenant rents a house, it is implied that the place is safe, livable, and adheres to the basic sanitation requirements. However, if the house is infested with insects, does not provide the tenant with hot and cold water regularly, or is unsafe to live in, it amounts to breach of habitability warranty. All the public areas of the building come under warranty of habitability. If the landlord fails to inform you of the possible hazards of living in the apartment, it amounts to breach of habitability. This includes a leaky gas connection, problems with the drainage, improper or broken fixtures like sinks, bathtubs, taps, etc. This does not apply in case the tenant himself is responsible for uninhabitable conditions.
Of Insurance
When a party buys an insurance and the party selling the insurance are obligated to make complete and truthful disclosure regarding the policy, or if either of the party fails to disclose certain facts regarding the insurance or health or vehicle or anything that is insured, it will amount to breach of insurance. For example, if the insurance company claims to provide cashless treatment in case of an emergency, and fails to do so, then it falls under this violation. In case the person buying the insurance gives a warranty that he will keep his house locked, and secure it with the best security systems to avoid burglary. However, if burglary does occur, and it is found the owner did not lock his house and did not use any security system to protect it, the insurance company will not pay, as it appears to have breached warranty.
Breach of Express Warranty
When a seller guarantees that for a specific period, the quality or performance of a product is assured and if any problem arises, it can be returned, replaced or repaired, it is called express warranty, and is given in writing as a 'Warranty' document. However, when certain components of the product cease to function or fail to operate before the period expires, it amounts to a breached warranty. The dealer is legally obliged or bound to provide replacement or repair of the product for free.
When proven that a breach of contract has occurred, the court may order the party at fault to pay for damages. The damages include refund or replacement of the product or service. If the dealer dishonors the warranty, he may be sued in court and penalized.
Most business or legal contracts, even real estate transactions, come under warranty. This helps safeguard the buyer as well as the seller from being taken for a ride. Speak to your lawyer regarding the case and take proper legal action, if needed.