A warranty is a “legally binding assurance” forming part of the sales contract which assures the buyer that the product is free from defects.  A warranty often provides for a specific remedy such as repair or replacement in the event the article or service fails to meet the warranty.  In business and legal transactions, a warranty is an assurance by one party to the other party that certain facts or conditions are true or will happen.  The party who purchases the product is permitted to rely on the warranty and seek legal remedy if the warranty is breached.

A warranty may be express or implied.  In some cases, the seller of a particular commodity or property expressly guarantees about the quality of the product purchased.  In certain situations, the law implies a warranty where no express warranty was made.  Apart from products, warranties are made with respect to real estate, insurance, and sales and leases of goods and services.  In the case of real estate sale like land, houses or apartments, the seller usually includes a warranty regarding the title to the property.  Other types of warranties related to real estate titles include special warranty deed that no party made a claim to the property during the seller’s ownership and covenants of further assurances.