We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding the Basis of the Bargain Test in Contract Law
Definition & Meaning
The basis of the bargain test is a legal standard used to determine whether an express warranty exists in a sale of goods. Under section 2-313 of the Uniform Commercial Code (UCC), this test assesses if any seller's promise, affirmation, description of goods, or sample/model influenced the buyer's decision to enter into the contract. Essentially, it asks whether these representations were significant enough to form the foundation of the agreement between the buyer and seller.
Table of content
Legal Use & context
This term is primarily used in commercial law, particularly in cases involving the sale of goods. The basis of the bargain test helps courts evaluate express warranties, which are assurances provided by sellers about the quality or nature of the goods. Understanding this concept is crucial for buyers and sellers alike, especially when drafting contracts or resolving disputes. Users can benefit from legal templates available through US Legal Forms to create clear agreements that reflect the basis of the bargain.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A buyer purchases a car after the seller claims it has never been in an accident. If this claim was a significant factor in the buyer's decision, it may serve as a basis of the bargain, potentially creating an express warranty.
Example 2: A buyer orders a specific brand of paint based on a seller's description of its durability. If the buyer relies on this description, it may establish a basis of the bargain, leading to an express warranty if the paint does not perform as promised. (hypothetical example)
Relevant laws & statutes
The primary statute governing the basis of the bargain test is section 2-313 of the Uniform Commercial Code (UCC). This section outlines the requirements for establishing express warranties in the sale of goods. Other relevant case law may further interpret these principles, but specific cases vary widely.
State-by-state differences
State
Notes
California
Strong consumer protection laws may enhance the basis of the bargain test.
New York
Case law often emphasizes buyer reliance on seller representations.
Texas
Courts may require clear evidence of reliance for express warranties.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Implied Warranty
A warranty that is not explicitly stated but is assumed to exist.
Basis of the bargain focuses on explicit statements, while implied warranties arise from the nature of the transaction.
Express Warranty
A warranty explicitly stated by the seller.
Basis of the bargain test determines if an express warranty exists based on buyer reliance.
Common misunderstandings
What to do if this term applies to you
If you believe the basis of the bargain test applies to your situation, consider the following steps:
Review any written agreements or communications with the seller.
Document any representations made by the seller that influenced your purchase.
Consult a legal professional if you face a dispute regarding an express warranty.
Explore US Legal Forms for templates that can help you create clear contracts.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.