Is a warranty contained in a contract enforceable?
Ontario, Canada
The following excerpt is from Riley v. Langfield, 2008 CanLII 23957 (ON SC):
A warranty contained in a contract is a term that does not go to the root of the agreement but, rather, expresses a lesser obligation. A breach will result in a claim for damages but not rescission: see Fraser-Reid v. Droumtsekas, supra, at p. 731.
The warranties were also expressed “to survive closing”. This is a clear expression of the intention of the parties and, hence, the concept of merger does not apply: see Fraser-Reid v. Droumtsekas, supra, at p. 734.
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