Contract Glossary
Breach of Warranty
Definition
A breach of warranty occurs when a promise or guarantee made in a contract turns out to be false or unfulfilled. Unlike a breach of contract (failing to do something), a breach of warranty means a representation about the state of things — quality, condition, ownership, or compliance — was wrong. The other party can claim damages for the gap between what was promised and what was delivered.
In Practice
A software vendor's contract warrants that the platform 'processes transactions in compliance with PCI-DSS security standards.' Six months in, an audit reveals the platform doesn't meet PCI-DSS requirements and never did. That's a breach of warranty — the vendor promised a state of affairs (compliance) that wasn't true. You can claim damages for the cost of remediation, the audit, and any fines from your payment processor.
Common in these contract types
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Frequently asked questions about breach of warranty
A breach of contract is a failure to perform an obligation — you didn't deliver the work, didn't pay on time, or didn't show up. A breach of warranty is a false representation — you said the product was certified, but it wasn't. The distinction matters for damages: breach of contract damages are based on what performance would have been worth. Breach of warranty damages are based on the difference between what was promised and what was delivered.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.