Terms to Know: Implied Warranty

There are several implied terms in every contract that are provided in commercial statutes.

Here is an overview of what these implied warranties are:

One of those is the implied warranty of merchantability.

This means, that if you buy goods from a merchant for use as they are ordinarily used, the goods will be fit for this ordinary purpose. If they are not in good working order, they can be returned, even without a written contract. Look at the written warranty in the contract. The written warranties may cover merchantability or your use of the goods. If you need more than what is there, negotiate this term.

What if you are not using something in an ordinary manner? What if you have a special need and you talk to the Seller about this? If you tell the Seller of your particular purpose, and the Seller recommends a specific product, the contract carries an implied warranty of “fitness for a particular purpose.” In this case, you are relying on the Seller’s expertise and judgment, and you need the contract to reflect this.

For example, you have a pathway outside your restaurant that leads to a gazebo that has poor drainage. The landscaping company, upon seeing your seating area and hearing that you are relying on their expertise, recommends a certain kind of gravel, stepping stones, and plants that will allow customers to safely and comfortably take the path without getting wet feet or slipping in the mud. If the stepping stones crumble from normal use, or the plants won’t grow in the gravel, the Seller landscaping company has violated its warranty of fitness for a particular purpose.

If the restaurant, however, provided the specifications to the landscaping company of what it needed, the restaurant did not rely on the Seller’s expertise and this warranty would not apply.

Things that are sold “as is” are not covered by any type of warranties.