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of <h1>Warranty breach allows damages claims but not contract rejection or repudiation rights</h1> Warranty is defined as an agreement relating to goods in a sales contract that is collateral to the main purpose. A warranty breach gives rise to damages claims but not rejection rights or contract repudiation. It must be a promise that representations are true and remain collateral to the primary contract purpose of transferring property and possession. Warranty provisions are recognized as liabilities requiring estimation when enterprises have present obligations from past events, probable resource outflows exist, and reliable estimates can be made of obligation amounts.
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