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Contracts • Terms of the Contract
K#097
Legal Definition
Warranties of quality include: (1) express warranties; (2) the implied warranty of merchantability, and (3) the implied warranty of fitness for a particular purpose.
Plain English Explanation
Under the UCC, there are 3 types of warranties that can be made about the quality of goods. The first are express warranties, which are those claims of quality that are expressly made. For example, if Sam sells a bicycle to Bob and says, "This bike can hold 500 pounds," then the bike should be able to hold 500 pounds. If it doesn't, then the warranty of its quality has been broken.
The second is implied warranty of merchantability, which simply means that the goods are of a reasonable quality expected for their purpose. For example, if Sam sells a bicycle to Bob, but the bicycle cannot hold more than 10 pounds, this warranty has been broken. Why? Because it is implicit that a bicycle should be able to hold the weight of a person riding it, otherwise what's the point?
The third is the "implied warranty of fitness for a particular purpose," which means that when the seller is aware of the unique circumstances of a buyer, then the goods they sell them should be able to meet those needs. For example, if Bob tells Sam, "I'm planning on going mountain biking for a weekend, which bike do you recommend?" The bikes that Sam recommends should be the quality that are appropriate for mountain biking. If Sam sells Bob a beach cruiser intended only for riding on paved bike paths, then this warranty has been broken.
The second is implied warranty of merchantability, which simply means that the goods are of a reasonable quality expected for their purpose. For example, if Sam sells a bicycle to Bob, but the bicycle cannot hold more than 10 pounds, this warranty has been broken. Why? Because it is implicit that a bicycle should be able to hold the weight of a person riding it, otherwise what's the point?
The third is the "implied warranty of fitness for a particular purpose," which means that when the seller is aware of the unique circumstances of a buyer, then the goods they sell them should be able to meet those needs. For example, if Bob tells Sam, "I'm planning on going mountain biking for a weekend, which bike do you recommend?" The bikes that Sam recommends should be the quality that are appropriate for mountain biking. If Sam sells Bob a beach cruiser intended only for riding on paved bike paths, then this warranty has been broken.
Visual Aids
Related Concepts
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