Disclaimer of warranties
| Disclaimer of warranties |
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| See also |
Disclaimer of warranties the products are sold as is, where is and Seller expressly disclaims all other warranties, express or implied, including warranties of title or infringement, and any implied warranties of merchantability or fitness for a particular purpose. Buyer is purchasing the Products with full assumption of the risks associated with this disclaimer, and the purchase price has been negotiated to reflect this assumption of risk[1].
A warranty disclaimer is an oral or written statement indicating that the seller is not bound by any warranty guarantees regarding the product sold. Because each type of warranty is created in a different way, the number in which each one can be disclaimed or limited by the seller varies[2].
Types of warranty disclaimer
To explore the disclaimer of warranties under the Code, we will look at the following[3][4]:
- Disclaimer of Title Warranty in an ordinary sales transaction, the title warranty can be disclaimed or modified only be specific language in a contract. Example: Craft Tool Corporation sells metalworking tools to Dunlap Milling Company. Among the warranties and disclaimers that accompany the goods, Craft Toll asserts that it is transferring only the rights, title, and interest that is has in the goods.
- Disclaimer of Express Warranties a seller or lessor can disclaim all oral express warranties by including a written disclaimer in the contract. The disclaimer must be in language that is clear and conspicuous, grabbing a buyer's or lessee's attention. For instance, the disclaimer might be printed in a different color, front or size from the rest of the contract. The buyer or lessee must be made ware of any warranty disclaimers or modifications at the time the contract is formed.
- Disclaimer of Implied Warranties generally, the implied warranties of merchantability and fitness are disclaimed by an expression such as as is and with all faults. Both parties must understand that the expression is intended to call the buyer's attention to the fact that there are no implied warranties.
To disclaim the implied warranty of fitness, the disclaimer must be in writing and be conspicuous. The world fitness does not have to be mentioned. It is sufficient if the disclaimer states, There are no warranties that extend beyond the description on the face hereof. A merchantability disclaimer must mention the word merchantability. A merchantability disclaimer does not have to be in writing. If it is, however, the writing must be conspicuous.
Warranties on the Web
Most firms conducting electronic commerce have little trouble fulfilling the requirements needed to create enforceable, legally binding contracts on the Web. One area that deserves attention, however, is the issue of warranties. Any contract for the sale of goods includes implied warranties. A seller implicitly warrants that the goods it offers for sale are fit for the purposes for which they are normally used. If the seller knows specific information about the buyer's requirements, acceptance of an offer from that buyer may result in an additional implied warranty of fitness, which suggests that the goods are suitable for the specific uses of that buyer. Sellers can also create explicit warranties by providing a specific description of the additional warranty terms. It is also possible for a seller to create explicit warranties, often unintentionally, by making general statements in brochures or other advertising materials about product performance or suitability for particular tasks[5].
Footnotes
References
- Burnham S.J., (2012), Glannon Guide to Sales, Wolters Kluwer Law & Business, New York.
- Miller R.L., Hollowell W.E., (2018), Business Law, Cengage Learning, Brazil.
- Schneider G., (2010), Electronic Commerce, Cengage Learning, Australia.
- Stark T.L., (2003), Negotiating and Drafting Contract Boilerplate, ALM Publishing, New York.
Author: Marlena Dopnik
