Find a Solicitor for your Breach of Warranty Claim

How can our breach of warranty claim solicitors help?

Breach of warranty claims can naturally be time-consuming and challenging. Our team of solicitors are on hand to support you throughout the entire warranty claim process. Here are just some of the ways Lawhive can help:

Why choose Lawhive for breach of warranty claims?

Our team of commercial solicitors are on hand to support with breach of warranty claims. With Lawhive, you get a fast, efficient service that's unlike a traditional law firm:

• Expertise in contract law: Our breach of warranty claim solicitors have years of combined experience in handling contract law. From assessing claims to representing clients in negotiations and court proceedings - they have you covered.
• Cheaper on average: Typically, Lawhive can be up to 50% cheaper than a traditional law firm. You get a top-quality legal professional without the hefty pricey tag.
• Transparent pricing: We strive to provide transparent pricing for every client. We'll give you an instant fixed-cost quote for your case with no unexpected surprises.

Costs and solicitor fees involved

The fees for a breach of warranty claim solicitor can vary. Typically, you can expect to pay for different services depending on whether you're pursuing or defending a claim.

• Legal fees for pursuing a claim: The costs involved for claimants might include solicitor fees, court fees, and expert costs for assessing damages.
• Legal fees for defending a claim: The potential costs for defending against a breach of warranty claim include solicitor fees for advice and legal representation and the possibility of recovering costs if the defence is successful.

Businesses should also be aware, while not technically a legal cost, there is a management cost for pursuing and defending a legal claim. A management cost refers to the level of distraction a legal cause causes to senior executives, taking their focus from business operations.

Types of warranties in business transactions

There are two categories of warranties: express warranties and implied warranties. Let’s explore what these terms mean.

What are express warranties?

Express warranties are explicit guarantees made by the seller about a product, service, or transaction. They can be made in writing or orally and can be an influencing factor in their decision to make a purchase. Examples include warranties regarding the quality of goods, financial statements in business sales, or compliance with legal regulations. If sellers breach a warranty, they may be liable to pay compensation to the buyer.

What are implied warranties?

Some warranties aren’t explicit, but they are assumed to be part of a contract as they are implied by law, even if they are not expressly stated in a contract. Common implied warranties include:

• Fitness for purpose - the goods must be fit for the buyer’s intended use, which the seller is aware of
• Merchantable quality - the goods must meet a certain standard of quality to meet a consumer’s expectations, as outlined in the Sale of Goods Act 1979

Warranties in mergers and acquisitions (M&A)

Warranties play an important role in M&A transactions. They are statements where a seller provides assurances about the condition of the business. Warranties protect buyers from liabilities that they may take on when acquiring a business. They can also include a provision to lower the purchase price of the business when there is an incorrect warranty.

Common causes of breach of warranty claims

By understanding the key causes of breach of warranty claims, businesses can identify and mitigate risks, putting together more robust warranties. Here are the most common causes of breach of warranty claims.

Defective goods or services

Quality assurance for goods or services is one of the key elements of a warranty. When products and services do not meet the quality or performance standards guaranteed by the seller a buyer may be able to make a breach of warranty claim.

False or inaccurate information

Businesses may pursue a breach of warranty claim if a seller provides incorrect or misleading information about the business in a business sale. This can include overstated financials or undisclosed liabilities to make the business look like a more attractive proposition with higher profit and lower debt than is the reality.

Non-compliance with legal standards

Warranties may include clauses about regulatory compliance, such as financial companies’ reporting responsibilities to the FCA. Legal standings may also be included, relating to health and safety laws or environmental regulations. When these elements of a warranty are breached a seller may claim damages or compensation.

Failure to meet contractual obligations

Unfulfilled contractual obligations can cause breaches where sellers fail to meet conditions tied to contract obligations, such as delivery schedules or equipment functionality.

Legal remedies for breach of warranty

There are a few main ways to resolve a breach of warranty dispute. A commercial dispute solicitor might recommend:

Damages for breach of warranty

Typically, breach of warranty claims are settled with an award of damages that provide compensation to the claimant for losses they experienced as a result of the breach. Damages are calculated based on:

• Diminished value: The difference between the value of the goods or business as warranted and their actual value. By claiming diminished value, a buyer can claim damages to restore them to the position they would have been in if the warranty had been accurate. This is determined by comparing the value of the business now against what it would have been if the warranty was ‘true’, with the difference between the value being owed to the buyer
• Consequential losses: These are losses resulting from the breach, such as loss of profits or costs incurred in repairing or replacing defective goods. They are also known as indirect losses and are not directly related to the breach. They are not always recoverable, only in instances where the buyer should have been aware of the circumstances that would lead to the loss when they signed the contract.

Rescission of contract

Typically, a breach of contract is minor, with the successful claimant being awarded damages. However, in some cases, where the breach is severe, the claimant may seek to rescind the contract, returning the parties to their pre-contractual positions. It's important to understand that the right to rescind a contract for a breach is a complicated area of the law.

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