Warranty is a contractual term which is concerned with the quality, longevity, condition, performance, and character of a particular good. It is offered and validated after a sales transaction. Warranties of various kinds are recognised under the law.
Warranty types can be grouped into two broad groups. They are:
Implied Warranty
Express Warranty
Both express and implied warranties are extremely crucial to settle a contract of sale between the purchaser and the seller.
Express Warranty
A seller provides a guarantee of quality and reliability in the form of an express warranty. As per express warranties, if a product fails to meet the mentioned claims, the manufacturer or seller will be liable to fix or replace it without charging any additional cost.
Warranties which are incorporated in a contract at the mutual will and knowledge of both the parties (the seller/manufacturer and the buyer) are known as express warranties. This sort of warranty is commonly seen on product packaging or warranty cards.
An express warranty can be created by any statement, promise, description of goods, or sample which must conform to the guarantee claimed by a seller while selling any product.
Implied Warranties
An implied warranty is a warranty which arises automatically from a sale or its circumstances. In such cases, implied conditions automatically apply under law. It exists without needing to be expressed or written. Such warranties are referred to when a buyer observes a dispute in the goods and claims his rights to damage. Section 14 and 16 of the Sale of Goods Act (1930) discloses implied warranty definition.
In sale transactions, implied warranties can be of two kinds. They are as follows-
Implied Warranty of Fitness for a Specific Purpose.
Implied Warranty of Merchantability.
Implied warranty of fitness for a particular purpose guarantees that a product will serve the specific purpose for which a buyer purchased it. Here, the buyer relies on the judgement of a seller and lets him or her select the best product to meet specific purposes.
On the other hand, an implied warranty of merchantability means it will meet the purpose for which it was designed or manufactured in the first place. This warranty automatically forms a part of every sale until a seller or the merchant modifies it otherwise. Implied warranty for merchantability meaning is that when a product guarantees the following:
Perfectly Eligible for trade.
Boasts Uniform Quality and Quantity.
Conforms to its Claims.
Fits the Ordinary or the Specific Purpose for which it is being sold.
Properly Packaged and Labelled.
Other sorts of Implied Warranties are detailed below:
Warranty as to Undisturbed Possession
This guarantees a buyer that once he buys a certain product, he cannot be deprived of it. He has the right to enjoy its sole possession after making the necessary payment to the seller. In case he faces any disturbance related to the possession of that good, he can file a complaint against the seller for offending the warranty claims.
For example, a customer buys a car from a person and repairs it for use. However, it is later discovered that the car was actually stolen or fraudulently acquired by that seller. In such a case, that seller will have to bear the cost of damage done to both the parties as well as pay the repair charges.
Warning against the Dangerous Nature of a Good
If a certain product is naturally dangerous, implied warranties automatically arise where the buyer has the right to be informed about the risk. A seller is bound to let the buyer know of the danger a product is liable to cause. If a seller intentionally or unintentionally does not warn the buyer of the risk, he will later be responsible in case of any damage caused to that buyer.
Warranty for the absence of Third-party Charges
Implied warranties against encumbrances or third-party charges are mandatory on the sale of certain products. This warranty frees a buyer from having to face added costs from any third-party individual or entity. He is not liable to pay any amount which he has not been briefed about during the contract of sale.
FAQs on Express and Implied Warranties
1. How to define an Express Warranty?
Ans. In a sale transaction, an express warranty is one which is declared verbally or in written form by the seller. Express warranty definition varies as per the nature and quality of the product being sold. Such warranties are made by a seller guaranteeing that the concerned good will be of proper quality and fulfil the buyer's requirements.
2. What are the Merchantability Definition and Warranty?
Ans. Merchantability means the product’s quality of being fit for sale. Warranty of merchantability suggests the implied warranty that a product will perform as claimed by the manufacturer or seller. The buyer here trusts the judgements and claims of the seller. If the product fails to meet the purpose for which it was manufactured, the merchantability warranty has trespassed. As such, that buyer can file a case against the seller on false claims.
3. What is the Implied Warranty Meaning?
Ans. You can define implied warranty as to the warranty which is neither spoken nor declared verbally yet exists out of the law. An implied warranty automatically emerges in a contract of sale and can be later referred to in case of any dispute related to the product. Section 14 and 16 under the Sale of Goods Act thoroughly details the various types of implied warranties.