What is Implied Warranty?
An implied warranty is either oral or contractual legal term in any sale with the assurance that the product sold to the customer will meet their expectation & the purpose it needs to serve, it is not applicable for services. It is a presumption that the product delivered to a customer will work and serves its purpose fully, i.e. if we purchase a watch, it comes with an assurance that it works well and shows the time correctly.
Purpose
- It generally expresses the quality of goods sold to a customer.
- It must fulfil the purpose for which the goods are sold, and also, it must meet the customer expectation.
- It protects customer rights against fraudulent activities by the seller.
- If the goods don’t fulfil the purpose, it gives rights for the customer to take action against the seller.
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For eg:
Source: Implied Warranty (wallstreetmojo.com)
Examples of Implied Warranty
Example #1
Let’s consider if we purchase a mixer. It implies that it should grind well and everything which is mentioned as per the manual. If it doesn’t, then the customer can ask for a replacement or warranty from the seller, which covers under an express warrantyExpress WarrantyExpress warranty refers to the seller's promise to timely replace or repair a default product, its parts or service as quoted in the agreement so formed. It can be an oral or written commitment that serves as a purchase condition for many buyers.read more.
Example #2
If we buy a dishwasher and due to some defect, the vessel washed changes, it’s color, or its brakes, in this case, what implied warranty covers?
- It only covers the dishwasher but not the vessels. Hence you can’t ask for the vessels.
Sections
Section 14 and 16 of the sale of goods act deals with the Implied warranty, briefly explained below:
Section – 14 Implied Undertaking of Title
There is always an implied condition for the title as per the contract of sale; unless there is implied conditions like below:
- There is a condition on the part of the seller that during the sale, he has a right to sell the goods and at the time of agreement to sell, he will have a right to sell the goods at the time when the property is to pass to another buyer
- The buyer shall have quiet possession of the goods;
- That the goods should be free from any charge in favor of any party other than the buyer before or at the time when the contract is made.
Section – 16 Implied Conditions on Quality or Fitness
There is no implied warranty for quality or fitness of goods supplied under a contract of sale, except the following
- When a seller produces goods as per the instructions of the buyer and if he fulfils the buyer expectation or if the seller has his patent or trademark
- Where goods are bought by description; if the buyer has examined the goods on his own and accepted it, then It doesn’t apply after such examination.
- Whether a contract has an express warranty or not, it does nullify this warranty.
Implied Warranty vs. Express Warranty
- An express warranty deals with the quality of the product while an implied warranty deals with whether the product serves its purpose
- An implied warranty may be implied mostly, but an express warranty will be mainly in a contract and may take many forms like verbal or written.
- Express Warranty mostly can be proved, and the customer can claim the seller, but sometimes implied warranty cannot be claimed as there is no evidence.
Benefits
The main benefits are that it says the goods sold should serve its purpose; whether there is any contract between the buyer or seller, the buyer can claim the seller if the good doesn’t work or serve its purpose for which it has been bought.
Limitations
- Generally, it is considered as a limitation as the seller can sometimes deny the buyer to retake the good or give a replacement.
- If the buyer checks the product before buying, then this warranty doesn’t apply here.
- If the goods are as per the patent the buyer cannot claim later that it doesn’t fulfill his purpose or expectation;
Conclusion
Though every contract or purchase has an implied warranty attached to it, sometimes it cannot be proved. Hence it is applicable only up to a specific limit and period.
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