What Is A Breach Of Warranty In A Contract And What Can You Do About It?
Sometimes called an ‘extended guarantee’ a warranty is a legally binding agreement between the consumer and the warranty provider. It acts like an insurance policy, as the consumer pays a premium and in return the policy provides cover for the unexpected breakdown or failure of goods.
Warranties will usually be specific to the item covered and will often have certain limitations at play. These will be stated in the terms of the warranty. If a problem does arise – for example, the office photocopier breaks down after four years, but the warranty lasts for five years – the warranty provider must provide a solution.
Warranties are regularly used in the commercial world in various different business and contractual situations. One of the most common examples is the sale of a business. Within the sale and purchase agreement, the seller must provide a series of warranties which together provide a comprehensive set of contractual promises. This may include a warranty to say the business accounts are accurate and all liabilities are divulged.
But if these assurances turn out to be false, there will be a breach of warranty. Thus if it transpires that the vendor of a business did not disclose certain information, and this causes the purchaser to suffer a loss, there will be a breach.
If this has happened to you, you could be in a position to make a breach of warranty claim. To do so, it must be established firstly that a breach of warranty has indeed occurred, and secondly that this breach has caused you to suffer financially. Although this may sound straightforward, such claims can actually be extremely complicated, especially if the breach affected the value of the business which had been purchased.
However, that is not to say that you cannot obtain compensation; if you have suffered losses because of a breach of warranty, you are perfectly within your rights to claim redress. Nevertheless, you will need an experienced solicitor to act on your behalf, as this will ensure you have a strong case which reaches a successful outcome.
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