Implied warranties: Overview, definition, and example
What are implied warranties?
Implied warranties are legal assurances that are automatically assumed to be in place in a contract, even if they are not explicitly stated. These warranties are built into the agreement by law to ensure that certain minimum standards are met, protecting the buyer or consumer. Implied warranties apply to goods and services, ensuring that products are fit for their intended use and meet basic standards of quality, safety, and functionality.
For example, when you purchase a product, it is often implied that the product will work as expected and is free from defects, even if the seller doesn't explicitly guarantee this in writing.
Why are implied warranties important?
Implied warranties are important because they provide a basic level of consumer protection. They ensure that products and services meet a standard of quality and safety, even if the seller or provider does not offer a specific warranty. This gives buyers confidence that the items they purchase will be functional, safe, and suitable for the intended purpose.
For businesses, understanding implied warranties is essential to avoid legal issues and potential lawsuits. Failing to meet the implied standards can lead to claims of breach of warranty or consumer protection violations.
Understanding implied warranties through an example
Let’s say you buy a refrigerator from a store. The store doesn’t give you a written warranty, but under the law, there’s an implied warranty that the refrigerator will work as expected. This means that the refrigerator should cool properly, not be defective, and be suitable for home use.
If the refrigerator fails to cool properly within a reasonable period after purchase, the implied warranty means you may be entitled to a repair, replacement, or refund, even though the store did not explicitly offer this guarantee.
Now, consider buying a pair of shoes from a store. Even if the store does not give you a written warranty, there is an implied warranty that the shoes are free from defects and are wearable. If the shoes fall apart after a few uses, you may be able to claim a remedy under the implied warranty.
Example of an implied warranties clause
Here’s an example of how implied warranties might be referenced in a contract:
“The Seller warrants that the goods provided under this Agreement are free from defects, of merchantable quality, and fit for the intended purpose. This warranty is implied by law and cannot be waived by the Seller. The Buyer’s remedy for breach of this warranty shall be limited to repair, replacement, or refund, at the Seller’s discretion.”
Conclusion
Implied warranties are automatic protections that ensure goods and services meet a minimum standard of quality and safety. They provide consumer protection by guaranteeing that products will work as expected, even if no explicit promise is made by the seller. Whether you're a consumer buying a product or a business providing goods or services, understanding implied warranties helps ensure compliance with the law and prevents disputes. It also reassures consumers that their purchases are protected, giving them confidence in the marketplace.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.