What differentiates "express warranty" from an "implied warranty"?

The correct answer highlights a fundamental distinction between express and implied warranties. An express warranty is clearly stated and explicitly defined, often written or spoken, where the seller makes specific claims about the product's characteristics or performance. This type of warranty provides a guarantee that certain conditions or qualities will be met, allowing customers to rely on the accuracy of these statements in their purchasing decisions.

On the other hand, an implied warranty arises by operation of law, rather than being specifically stated. It suggests that certain expectations or guarantees about a product exist, even if they are not formally articulated. For example, an implied warranty of merchantability assures that a product will meet a minimum level of quality and performance that a buyer can reasonably expect.

This distinction is crucial in commercial contracts because it affects the rights and obligations of both buyers and sellers. Buyers can assert claims based on express warranties when products do not meet the stated specifications, whereas implied warranties deal with standards of quality and fitness that the law assumes are present.

Understanding this concept is important in contract management, as it influences negotiations, risk assessment, and compliance with legal standards.