A breach of warranty is an act that violates an express warranty. This occurs when the claims made by a manufacturer of a product at the time of sale were found to be false. Specifically, it is a violation of the agreement reached between the seller and the buyer.
The warranty referred to here is the express warranty. This type of warranty is provided by a manufacturer to guarantee that the product they’re selling is made from quality materials and free from defects but only for a specific period of time. Should the product bought by a customer fails to operate properly within the timeframe specified, a breach of warranty occurs.
A concrete example would be the purchase of a digital camera from a retail store. For instance the express warranty is effective for three months but the item already starts to experience problems within that period. In this particular situation, a breach of warranty has already occurred.
When this happens, the retail store or manufacturer is obligated to either do repairs on the digital camera or replace it with a new one or refund the customer. Customers have the right to choose what they want to avail of after discovering the defect of the item.
In instances when the product is later found to be unsafe such as in the case of powdered milk found to contain harmful chemicals, the manufacturer can be sued for negligence. When found guilty, the company may be ordered by the court to compensate complainants.