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Contracts • Terms of the Contract
K#104
Legal Definition
The implied warranties of merchantability and fitness for a particular purpose can be disclaimed by: (1) conspicuous language of disclaimer (mentioning merchantability), or (2) language like "as is" or "with all faults" (need not be conspicuous).
Express warranties cannot generally be disclaimed.
Express warranties cannot generally be disclaimed.
Plain English Explanation
In the land of Contract Law, just about everything is negotiable and available to bargain over. Though most people want warranties and guarantees when they buy stuff, the law is okay with parties agreeing that no such warranties exist as long as both parties are aware that is the case. In other words, where a seller makes it clear that a product is "as-is", then the buyer can't later sue for defects that are discovered.
The only exception to this is express warranties. If you sell something as-is while simultaneously providing an express warranty, then the "as-is" disclaimer only applies to whatever you didn't expressly provide a warranty for.
The only exception to this is express warranties. If you sell something as-is while simultaneously providing an express warranty, then the "as-is" disclaimer only applies to whatever you didn't expressly provide a warranty for.
Hypothetical
Hypo 1: Bob wants to buy Sam's car. Sam says, "I'll sell you this car, but it needs some work, so I'm only willing to sell it as-is." Bob says, "That's fine, I just need a car that can get me to work." While Bob is driving it to work, it breaks down. Result: Bob has no claim against Sam. The car was sold as-is, which disclaimed any warranties.
Hypo 2: Bob wants to buy Sam's car. Sam says, "I'll sell you this car, but it needs some work, so I'm only willing to sell it as-is." Bob says, "That's fine, I just need a car that can get me to work." Sam says, "Yeah, it can definitely get you to work. The engine is in great shape." While Bob is driving it to work, the engine explodes. Result: Sam's as-is disclaimer does not negate his express warranty that the car's engine is in good shape. Bob can bring a claim against Sam.
Hypo 2: Bob wants to buy Sam's car. Sam says, "I'll sell you this car, but it needs some work, so I'm only willing to sell it as-is." Bob says, "That's fine, I just need a car that can get me to work." Sam says, "Yeah, it can definitely get you to work. The engine is in great shape." While Bob is driving it to work, the engine explodes. Result: Sam's as-is disclaimer does not negate his express warranty that the car's engine is in good shape. Bob can bring a claim against Sam.
Visual Aids
Related Concepts
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