What is a breach of warranty in relation to the sale or lease of goods?

A breach of warranty occurs when a seller or lessor fails to uphold an express or implied promise regarding the quality or characteristics of the goods sold or leased. This means that if a warranty is explicitly stated or if it is implied that the goods meet certain standards (such as being fit for a particular purpose or of merchantable quality), and those conditions are not met, it constitutes a breach of warranty.

For instance, if a product is sold with a written warranty that it will function properly for a certain period, and it fails to do so, the seller has breached that warranty. Similarly, implied warranties, which are automatically generated by the sale, require that goods be fit for their intended use. If the goods sold do not perform as a reasonable person would expect, this can also lead to a breach.

This concept is foundational in contract law, particularly in sales transactions, as it protects buyers from misleading claims and ensures that sellers are held accountable for the quality of their products. In contrast to the other provided alternatives, which pertain to different legal concepts, the essence of a breach of warranty is specifically tied to the promises made about goods and the obligations arising from those promises in a sale or lease context.