Basis of the Bargain Test Law and Legal Definition
Under section 2-313 of the Uniform Commercial Code, when determining whether an express warranty exists or is valid in a sale of goods between two parties, the court asks if any promise or affirmation, any description of the goods or any sample or model of the goods displayed by a seller “became a basis of the bargain” between a buyer and a seller thereby creating an express warranty on the goods.
Though this test is used by the courts to determine if an express warranty exists, it is unclear in the case law how precisely basis of the bargain is defined, if actual buyer reliance on the promise or description is required, or if the information is something that a reasonable buyer can rely on will suffice to meet the requirment.
