Express and Implied Warranties

Implied Warranties and Express Warranties are essential concepts to understand in the contract of sale. Let us discuss the various aspects of the Implied Warranties and also define the Express Warranties present within a contract of sale.

Implied Warranties

In case the buyer is content is content with his right to damages or can’t reject the goods, a condition (implied or express) may reach to the level of a warranty. Implied Warranties are disclosed in Section 14 and 16 of the Sale of Goods Act, 1930 and are the warranties which the law implies into the contract. In case the parties don’t want any of the implied warranties to be included, they will have to expressly mention that in the contract. Implied Warranties are as follows.

Warranty As To Undisturbed Possession

Well once you buy the goods, they shouldn’t be taken away from you. This warranty means that the buyer should have and enjoy quiet possession of the goods after having gotten the possession of the goods. If he is disturbed in his possession, he is entitled to sue the seller for the breach of the warranty.

For example, A buys a laptop from B. After the purchase, A spends some money on its repair and uses it for some time. Unknown to the parties, it turns out that the laptop was stolen and was taken from A and delivered to its rightful owner. B shall be held responsible for a breach and A is entitled to damages of not only the price but also the cost of repairs.

Warranty As To Non-Existence Of Encumbrances

This is an implied warranty which maintains that the goods are free from any encumbrance or charge from any third party who has not been introduced or known to the buyer at or before the time of the contract of sale is entered into.

For example, a person A pledges his computer to another person B against a loan of Rs. 30,000. “A” also promises B that A will produce the laptop and give it to B the next day. Later that day, A goes on to sell the laptop to C who is unaware of the course of dealings between A and B. In this case, C can ask A to clear the loan immediately or clear the loan by himself or herself and then proceed to file a suit against A for the recovery of the money spent including the interest.

Learn Sale and Agreement of Sale here.

Disclosure Of Dangerous Nature Of Goods

In case the goods are inherently dangerous or they are likely to be dangerous to the buyer and the buyer is ignorant or unaware of the danger, an implied warranty on the part of the seller emerges. The seller must warn the buyer duly about the dangerous nature of the goods if any. In case of a breach of this warranty, the seller will be liable in damages.

For example, a person X purchases a bottle of disinfectant from a person Y. Y knows that the cap of the bottle is defective or cheap and if opened by a novice without care, it may spill and result in partial burning or other damages of the person. When X opens the bottle, he is injured. In this case, X is liable in damages to Y as Y should have been duly warned of the probable danger.

Warranty As To Qualify Or Fitness By Usage Of Trade

An implied warranty as to the quality or the fitness for a particular purpose may be annexed by the usage of the trade. For example, consider the following example:

A drug was sold through an auction and according to the usage of trade. It was to disclose in advance any sea-damage, otherwise, it will be taken as a breach of warranty if no such disclosure has been made and the goods found to be defective.

This concludes the topic of the Implied Warranties. We can say that any warranty that is not expressed becomes an implied warranty. Let us now understand the Express Warranties.

Express Warranties

Warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated. [Section 12(3)]

Warranties that are inserted into the contract at the will and knowledge of the parties are said to be expressed warranties or the Express Warranties.

Solved Examples For You

Q: What are the several aspects or stipulations that are treated as implied warranties?

Answer: Following is the list of the warranties that the law treats as implied in the contract of sale:

1. Warranty As To Undisturbed Possession
2. The Warranty As To Non-Existence Of Encumbrances
3. Warranty As To The Disclosure Of Dangerous Nature Of Goods
4. The Warranty As To Non-Existence Of Encumbrances
5. Warranty As To Qualify Or Fitness By Usage Of Trade