Under section 2-313 of the Uniform Commercial Code, when determining whether an express warranty exists or is valid in a sale of goods between two parties, the court asks if any promise or affirmation, any description of the goods, or any sample or model of the goods displayed a seller “became a basis of the bargain” between a buyer and a seller- thereby creating an express warranty on the goods.
Though this test is used by the courts to determine if an express warranty exists, it is unclear in the case law how precisely the basis of the bargain is defined, if actual buyer reliance on the promise or description is required, or if the information is something that a reasonable buyer can rely on will suffice to meet the requirement.
The basis of the bargain test requires
- An affirmation of fact or promise by the seller;
- The natural tendency of which is to induce the buyer to purchase the goods; and
- That the buyer purchases the goods in reliance thereon.
[Last updated in July of 2022 by the Wex Definitions Team]