Express Warranty Definition
Express warranty is when it is explicitly stated either orally or in writing to guarantee for any products’ or a service’s quality or reliability. These promises include any representation of products, description of products/service or statements of facts.
Many of the purchases we make are covered by warranty. Warranty is a promise made by the supplier/manufacturer to either replace or repair the product if it is faulty or not up to the quality assured. Warranties help to promote the product about its quality and reliability. It gives the right to consumers to deal with the seller with respect to the product’s performance and quality.
When you’re buying a car where the supplier promised you that engine will last for 200,000 miles but your car engine broke before reaching 200,000 miles, the supplier has broken his express warranty made.
This warranty is conveyed to the buyer in three possible ways:
- By any statement of fact or promise relating to the goods or services.
- By the description of goods or services.
- By use of any sample or model
How Does it Work?
It is a statement of fact or promise made by the seller to the buyer relating to goods which becomes the part of the basis for buying or bargain. This means that the purchase has been made based on the assumption that goods or services were as stated by the seller. The warranty statement made by the seller must be specific & subjective. It can be an affirmation or statement of fact relating to goods, description of the goods, any sample. Also, the statement of opinions does not create any express warranty. The test of reliance with respect to the reasonableness of promise should be looked into. When any contract is made based on the understanding that the seller would supply the goods as per the description stated or as per the sample, then the seller is bound by this warranty that goods provided will conform to description and sample.
Where in case of a full warranty, the seller promises to repair or replace the product at no charge to the consumer. In case of a limited warranty, it covers all aspects which are not covered by a full warranty.
Why Does it Matter? – Consumer Point of View
Express warranty clearly protects the consumer against the quality or performance and reserves the right to claim damages from the seller. However, a buyer must be careful with respect to the warranties obtained. The buyer should try to obtain the written warranties. As we know these warranties need not be in writing, oral statements could be relied on, but difficult to prove. Warranty laws allow some sales talks usually called puffery or exaggeration. There don’t constitute to warranty.
It is a breach of warranty if any express warranty provided is false. Warranty laws contain provisions to provide written warranties for consumer products costing more than a certain amount before the sale. The seller has to put the written warranties along with the product or at least display any sign that warranties can be checked upon request. Most of the companies while selling their products and services provides a written list of warranties.
In case of any advertisement for a product, it should also tell the consumer the way how to obtain a copy of the warranty before he buys the product. This includes all advertisements made via email or telephone.
Differences Between Express Warranties and Implied Warranties
The following are the differences as shown below:
#1 – Express Warranties
- These are expressly made by the seller of the product
- In most cases, these are provided in writing by the seller.
- These are not deemed warranties.
#2 – Implied Warranties
- These are created by the law upon the sale of any goods or services.
- Implied warranty of merchantability states the product will perform for what it is designed for a reasonable level.
- Implied warranty of fitness states that product will work reasonably on basis of the assumptions or intention of the consumer.
- These are deemed warranties created by the law and are automatic upon sale.
If an express warranty exists it shall not be construed that the implied warranty doesn’t exist. When both express and implied warranties are present, it should be assumed that both are consistent with each other and cumulative. If such an assumption is not reasonable, then express warranty prevails over the implied warranty except in case of implied warranty of fitness for a particular purpose
Breach of Warranty
When there is any breach of warranty of any type, he has to prove the existence of warranty at first, the scope of the warranty provides & the manner in which the seller has breached the warranty. In such a case, then the buyer can
- Rightfully reject the goods for nonconforming to the initial promise made by the seller and call for the cancellation of the contract.
- Accept the nonconforming goods and can recover the damages from the seller for breach of the warranty in the name of damages.
- If the seller fails to deliver the goods to the buyer, then the buyer can exercise the same rights as in case of a rejection or instead of that, can seek for recovery of goods.
Express warranty and implied warranty are two different types of warranties available for the buyer where it is clearly expressed either in written or oral form by the seller and implied warranty is provided by law upon the sale of goods or services. Mere opinions or puffery cannot be construed as an express warranty.
In case of breach of warranty, the onus probandi of a breach is on buyer and he has to prove the existence, scope, and manner of breach of a warranty in order to exercise his rights.
This has been a guide to express warranty and its definition. Here we discuss an example and how does express warranty works along with its legal implications and breach. You can learn more about financing from the following articles –