An assurance or promise, usually made by a party to a contract and contained within that contract. A breach of a warranty will often rise to a claim for damages against the party who made the warranty.

In the context of share and asset purchases, a warranty is a contractual statement in the nature of a promise or undertaking as to the nature or extent of the target company or business and any related liabilities. For more information, see Practice note, Warranties and indemnities: acquisitions.