Business LawTU Board 2082 (old course)
Give the meaning of warranty.
2Answer
Warranty refers to a promise or assurance given by the seller to the buyer regarding the quality, quantity, title, or other specific attributes of the goods sold. It is a secondary obligation under the contract of sale, meaning its breach does not automatically terminate the contract but entitles the buyer to claim compensation for damages suffered.
Warranties can be express (clearly stated in words or writing) or implied (automatically included by law, such as the Sale of Goods Act, 2020). For example, an implied warranty of merchantable quality ensures that goods are fit for their ordinary purpose. Unlike a condition (a fundamental term whose breach may allow the buyer to reject the goods), a warranty breach only entitles the buyer to remedies like damages or price reduction, not cancellation of the entire contract.
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