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Legal Definitions - implied warranty
Definition of implied warranty
An implied warranty is a legal guarantee that is not explicitly stated, either verbally or in writing, but is understood to exist by law when certain transactions occur. These warranties are automatically presumed to protect buyers and tenants, ensuring that goods are suitable for their intended purpose, or that property is safe and livable.
Unlike an express warranty, which is a specific promise made by a seller (like a written guarantee or a verbal assurance), an implied warranty arises from the nature of the transaction itself. While some implied warranties can be limited or removed under specific circumstances (often by using terms like "as is"), many exist to establish a basic level of quality and fairness.
Several types of implied warranties exist, including:
- Implied Warranty of Merchantability: This applies when you buy goods from a merchant. It guarantees that the goods are reasonably fit for their ordinary purpose, are of average quality, and would pass without objection in the trade.
- Implied Warranty of Fitness for a Particular Purpose: This arises when a seller knows a buyer has a specific, non-standard use for a product and the buyer relies on the seller's expertise to select suitable goods for that particular use.
- Implied Warranty of Habitability: This applies to residential leases. It's a landlord's guarantee that the rental property is safe, clean, and fit for human habitation, meeting basic living requirements and not posing a threat to the tenant's health or safety.
- Implied Warranty for New Construction: For newly built homes, this warranty often guarantees that the home was constructed in a workmanlike manner and is free from significant structural defects.
Examples of Implied Warranties:
Example 1 (Implied Warranty of Merchantability): Sarah purchases a brand-new, unopened coffee maker from a large electronics store. She takes it home, follows the instructions, but the machine consistently leaks water all over her counter when brewing. The store never explicitly promised the coffee maker wouldn't leak, but the law implies a warranty that a coffee maker sold by a merchant should be fit for its ordinary purpose – brewing coffee without making a mess. Sarah can likely return the faulty coffee maker or seek a replacement because it breached this implied warranty.
Example 2 (Implied Warranty of Fitness for a Particular Purpose): Mark, an avid cyclist, visits a bike shop looking for a new bicycle specifically designed for competitive off-road mountain biking. He explains his needs to the salesperson, emphasizing the rough terrain and demanding conditions of the races he enters. The salesperson recommends a particular model, assuring Mark it's perfect for his stated purpose. If Mark buys that bike and it quickly breaks down or proves unsuitable for competitive off-road use, he might have a claim under the implied warranty of fitness for a particular purpose, as he relied on the salesperson's expertise for a specific need.
Example 3 (Implied Warranty of Habitability): Emily signs a lease for an apartment. A month after moving in, the building's main sewer line backs up, causing raw sewage to flood her bathroom and kitchen. Despite her repeated calls, the landlord takes weeks to address the issue, making the apartment uninhabitable due to unsanitary conditions and foul odors. Even though her lease agreement didn't explicitly state the landlord would maintain a functioning sewer system, the law implies a warranty of habitability, meaning the landlord is obligated to provide a safe and livable environment. Emily could have legal recourse, such as withholding rent or terminating the lease, because the landlord breached this implied warranty.
Simple Definition
An implied warranty is an unwritten and unspoken guarantee that is automatically presumed in certain transactions, such as the sale of goods or real property. It ensures that basic standards are met, protecting the buyer by preventing certain risks from transferring to them.