Breaches of warranties and broken contracts: What’s the difference?

On Behalf of | Apr 8, 2021 | Business Litigation

Many different types of contractual disputes may arise between companies and the individuals or entities that they serve. Breaches of warranties and contracts are two distinct allegations that can arise when something goes wrong — but they’re not the same thing.

Understanding the difference between a breach of warranty and a broken contract is important. The more you know, the better you can avoid unnecessary conflicts.

What’s a contract?

Contracts are legally binding agreements through which two parties may agree to exchange one thing for another, such as money for a product or service. Any violation of the contract’s terms and conditions may constitute a breach — but not every breach is actionable. It depends on whether the breach was “material” and caused some harm to the other party or not.

Plaintiffs in breach of contract cases can seek enforcement for specific performance. They can also sue for the termination of their agreement and reimbursement of their funds if they never received the services or items for which they contracted.

What is a warranty?

A warranty contract is when a seller assures a buyer of an item’s quality and/or usability for a specified period. Warranties can also pertain to intellectual property rights, how a product will perform and the ownership of shares in a particular company.

The Uniform Commercial Code (UCC) regulates how much compensation can exchange hands in breach of warranty cases. The UCC describes how plaintiffs can receive the difference between the value of the item they contracted to receive and what the defendant actually delivered. 

What if you have concerns about a breach of contract or breach of warranty?

An experienced business litigation attorney can go over what constitutes a solid defense strategy, as well as other options you may have to avoid further complications or consequences for your business here in Florida.