What happens if a "warranty" is breached in a contract?

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When a warranty is breached in a contract, the appropriate remedy often involves compensation for the damages resulting from that breach, rather than immediate termination of the contract. A warranty is typically a subsidiary promise that supports the main purpose of the contract, meaning that while a breach does indicate that something has gone wrong, it does not fundamentally undermine the entire contract. Therefore, the injured party is entitled to seek compensation for any losses incurred due to the breach but must still perform their own obligations under the contract unless specified otherwise.

This understanding is critical in contract law, as it distinguishes between warranties and conditions; the latter would allow for termination if breached. Additionally, the implications of a warranty breach focus on financially remedying the situation rather than undoing the contract altogether. Hence, the choice that reflects this principle about warranties accurately describes the legal landscape in which such breaches occur.

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