Laws vary from state to state but state statutes often provide for the creation of express warranties by a lessor of goods in lease transactions—such as for office equipment, computers, telephone systems, heavy machinery, home furniture, motor vehicles, or electronics.
Express warranties by the lessor are generally created by:
• Any affirmation of fact or promise made by the lessor to the lessee that relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods will conform to the affirmation or promise.
• Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods will conform to the description.
• Any sample or model that is made part of the basis of the bargain creates an express warranty that the whole of the goods will conform to the sample or model.
It is generally not necessary to the creation of an express warranty that the lessor use formal words, such as warrant or guarantee, or that the lessor have a specific intention to make a warranty—but an affirmation merely of the value of the goods or a statement purporting to be merely the lessor's opinion or recommendation of the goods does not create a warranty.
In Texas, express warranties by a lessor in lease transactions are governed by the Texas Business and Commerce Code, which is similar to the Uniform Commercial Code (UCC) adopted in many states. Express warranties are created when the lessor makes an affirmation of fact, promise, or description about the goods that becomes part of the basis of the bargain, or when a sample or model is provided as part of the deal. These warranties assure the lessee that the goods will conform to the affirmed facts, promises, descriptions, samples, or models. The creation of an express warranty does not require the use of formal words like 'warrant' or 'guarantee,' nor does the lessor need to have an explicit intention to make a warranty. However, statements of value or mere opinions by the lessor do not constitute express warranties. Lessees in Texas can rely on these express warranties when entering into lease agreements for various goods, and if the goods do not conform to the warranty, the lessee may have legal remedies available.
