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Contracts • Terms of the Contract
K#100
Legal Definition
Where (1) a seller has reason to know the particular purpose for which the goods will be used and that the buyer is relying on the seller's skill and judgment to select suitable goods, and (2) the buyer does in fact rely, the seller warrants the goods are fit for the particular purpose.
Plain English Explanation
Buyers should be allowed to trust the advice and judgment of the people selling them things. When they rely on that judgment, and the judgment is wrong, then liability falls on the seller.
Hypothetical
Hypo 1: Bob weighs 500 pounds and wants to get some exercise. He decides to go buy a bike from Sam who owns a bike ship. After squeezing through the door, Bob asks Sam, "Which bike would you recommend for me?" Sam looks at Bob and then says, "You should consider this EcoBike!" The EcoBike is made from recycled bamboo and weighs only 1 pound. Bob agrees and purchases the bike. On his way home while riding the bike, it crumples under his mass and falls apart. Result: When Bob sues Sam about his bamboo bike exploding under his weight, a reasonable person may say, "Well, Bob, you dummy -- why did you think a bike made out of thin stems of bamboo could possibly hold you?" Bob's reply is simple: "The expert at the bike shop looked at me and recommended this bike, so even though he didn't say it could hold my weight, why would he have recommended it to me if it couldn't?" This would be a solid case for breaking a warranty of fitness for a particular purpose.
Visual Aids
Related Concepts
Does the Parol Evidence Rule allow evidence of defenses to enforcement?
How does a limitation on remedies affect warranties?
How do you determine who is liable for risk of loss?
How do you identify express warranties?
How is the Parol Evidence Rule handled under UCC?
Under the Parol Evidence Rule, is parol evidence admissible to clarify ambiguities?
Under the Parol Evidence Rule, what is the effect of a clerical mistake in integration?
Under the Parol Evidence Rule, what is the effect of changing or contradicting terms in a written deal?
Under the Parol Evidence Rule, when are conditions precedent admissible?
Under the Parol Evidence Rule, when will a court allow terms to be added to a written deal?
Under the UCC, how is privity a limitation on warranty liability?
Under the UCC, in determining the seller's delivery obligations while using a common carrier, what is FOB (Free on Board)?
Under the UCC, in determining the seller's delivery obligations while using a common carrier, what is FAS (Free Alongside)?
Under the UCC, in determining the seller's delivery obligations while using a common carrier, what is CIF (Cost, Insurance, and Freight) and CF (Cost and Freight)?
Under the UCC, what is the effect of a buyer examining goods before acceptance?
Under the UCC, what is the statute of limitations on warranties of quality?
Under the UCC, when does risk of loss pass to which party when using a non-common carrier?
Under the UCC, which warranties can be disclaimed?
What are destination contracts?
What are shipment contracts?
What are the default warranties of quality available under the UCC?
What is a merger clause?
What is an implied warranty of merchantability?
What is an integration?
What is a partial integration?
What is parol evidence?
What is the Parol Evidence Rule?
When may conduct be a source of contract terms?
