breach of warranty

A party to a contract is entitled to perfect performance of a contract. Where performance is not in accordance with the contractual terms, the party failing to perform will be in breach of the contract. Whether or not this is a repudiatory breach or a breach of warranty depends upon the relative importance of the term of the contract that has not been complied with.

The innocent party is entitled to claim damages for a breach of warranty, but is not entitled to terminate the contract and bring both parties obligations to an end. It must be a breach of condition to entitle the innocent party to terminate the contract.

Usage: The supplier was in breach of warranty for failing to deliver the goods that satisfied the implied warranty of quality of fitness for purpose.

Related Words: contract; repudiatory breach.