Breach of warranty by misrepresentation may be brought in tort for damages or in contract if the representation was made as an inducement of a contract. Breach of warranty to do or refrain from some action is usually brought as a breach of contract action for damages , rescission or for specific performance .
When a product fails to meet the promises or guarantees made regarding its quality, safety, or performance, a lawsuit can hold the responsible parties liable for the harm they cause.
In the event of a breach of a warranty, the aggrieved party is entitled to damages, alternatively financial compensation for the loss of value. Their amount is often determined based on business valuation from the buy-side perspective.
The principle of assessing loss for a breach of warranty claim is consistent with the normal principle of compensatory damages. The aim is to put the buyer into the position it would have been in had the warranties been true. This will likely include compensation for any loss.
The party alleging the warranty breach is required to notify the other party and then prove the existence of the breach. Support for the alleged warranty breach will typically be in the form of evidence provided by a person with the necessary expertise in the subject matter of the warranty.
You can do this by going to your local small claims court and filling out the complaint packet. You will then file it and serve it on the warranty company. The judge will then hold a hearing to determine liability and damages.
Possible Defenses in Breach of Warranty Cases
Lack of privity (the parties had no contractual obligation to one another) Lack of warranty (there was no warranty) The buyer misused the product. The buyer failed to comply with the conditions set out in the warranty.
A warranty then is a promise, and if that promise is breached, some remedy must be forthcoming. The remedy may be provided for explicitly in a contract, calling for the repair or replacement of the product in question, or for the refund of some portion of the sales price to the buyer.
Time limits – in the absence of a contractual term, the normal period for which a breach of warranty or indemnity is actionable is six years; 12 years when the contract is executed as a deed.
Punitive damages generally are not recoverable in an action based solely on breach of warranty. However, plaintiffs rarely bring product liability breach of warranty claims for personal injury without also bringing strict liability and negligence claims.
Buyers seek compensation for breach of warranty damages when a product fails to meet the warranty's terms. A breach of warranty may entitle the buyer to pursue damages for losses caused by a defective or non-conforming product.
While liability based on intentional acts, negligence and strict liability, are all tort actions, liability based on breach of warranty is actually a contract action. There are two kinds of warranties that purchasers rely on in ascertaining the quality of a product: express warranties and implied warranties.
Let's say you buy a computer from a nearby electronics store, and when you get home, the product doesn't work — that's at least a breach of the implied warranty. If the manufacturer makes promises that the product doesn't meet, that's a breach of an express warranty, constituting express liability.
Collect evidence proving your position
Both sides need to get evidence to prove their side. This could be the contract itself or proof of a verbal agreement, receipts or bills showing expenses, letters, emails, other written communication, pictures, and witness statements.
Complain if you believe your warranty claim has been denied unfairly. Speak to a supervisor at the dealership, then go to the manufacturer or another dealer. Consider filing a complaint with the state Attorney General, local consumer protection office, local Better Business Bureau, or the FTC.
If such assurance is proved to be untrue, the buyer has a claim for breach of warranty. Generally, the breach takes one of two forms: (1) a misrepresentation of a fact or condition warranted to be true, or (2) a failure to do or refrain from some conduct warranted to be done.
Legal Consequences:
Diminution of price or extinction of the price: The buyer has the right to enforce a breach of warranty claim as a defence against a seller's claim for the full price of the good.
If the other party breaches a condition of the contract, you may be able to 'repudiate' the contract to terminate it and claim damages for your loss - or to 'affirm' the contract and claim damages. When the breach of contract is the breach of a warranty in the contract, the restitution is by damages alone.
Damages will take the form of financial compensation for the loss suffered. They will be the difference between the value of the company as warranted (generally taken to be the purchase price paid for the company) and the 'true' value of the company, had the buyer known that the warranties were incorrect.
A warranty claim will only be accepted if Customer provides reasonably sufficient documentary evidence to demonstrate that the root cause of the fault or non-conformity in the Vehicle is a breach of the Limited Warranty.
(1) Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may waive the condition or elect to treat the breach of the condition as a breach of warranty and not as a ground for treating the contract as repudiated.
Sue in Court
When your warranty company refuses to honor the terms of a warranty, you may have a claim for breach of contract. The amount allowed in small claims varies from state to state, but for most products, you can sue in small claims court.
Complain to the Better Business Bureau and to your state attorney general or consumer protection office. If all else fails, sue for damages. No one wants to go to small-claims court, but a warranty is a contract that holds up in court. For expensive products, look into contacting a consumer attorney.
Contact the Citizens Advice consumer service if you need more help - a trained adviser can give you advice over the phone or by online chat. An adviser at your nearest Citizens Advice will also be able to help you argue your case or argue for you.