An assurance or promise in a contract, the breach of which may give rise to a claim for damages. It is essentially a minor term of a contract.

In the context of a finance transaction, warranties (and representations) are the statements which an obligor makes in a finance document about itself and the circumstances of the debt or security. From the financier's, or secured party's, point of view, they set out the factual matrix on which it has agreed to make available the loan, or accept security. They are not typically disclosed against (in contrast to representations and warranties made in corporate finance documents, such as sale and purchase agreements).

Although a breach of a warranty may entitle the person taking the benefit of it to a remedy for breach of contract, in finance documents, such a breach also constitutes an event of default.