Implied Warranty Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Implied Warranty, written in plain English, along with examples of how it is used.

What is Implied Warranty?

In a common law, it is assumed and assursed that in a contract of sale, the goods sold and purchased are reasonably fit for its use and is merchantible (tradeable). Such assurance or warranties are implied. The goods have an implied warranty for the purpose of its use and fitmess of the goods to be used. The court takes this implied warranty whena sale is made to safeguard the buyer from any inconsistency. Such warranties maybe oral or written, but generally oral.

History and Meaning of Implied Warranty

Implied warranty is a legal term that came into existence in common law to protect buyers from sellers who try to take advantage of them by selling defective or unsatisfactory goods. In simple terms, an implied warranty is a promise that the goods or products purchased will comply with the standards set by the state law or industry standards. Implied warranty is related to a concept called "caveat emptor" or "buyer beware," which suggests that before buying any product, the buyer must ensure that the product meets their requirements.

The implied warranty is of two types, namely, implied warranty of merchantability and implied warranty of fitness for particular purpose. Implied warranty of merchantability is an assurance given by the seller which states that the product is of standard quality, is fit to be traded, and is usable for the purpose it is intended. The implied warranty of fitness for a particular purpose states that the product will fulfill the requirements of the buyer and will also meet the needs it was bought for. In case the product fails to work accordingly, the buyer can seek remedies as per the law.

Examples of Implied Warranty

  1. Suppose you purchase a motor vehicle, and it is implied that the vehicle is safe, functioning and can be driven for personal use without any issues. If any legal issues arise related to the safety of the vehicle, the buyer can ask the seller to compensate.

  2. Imagine you buy a washing machine, and there is an implied warranty of merchantability that the machine is suitable for washing garments, linens, and curtains without causing any significant damage. If the machine fails to work or causes any serious damage, you can claim compensation.

  3. If you buy an air conditioner, for home use, the implied warranty of fitness for a particular purpose means that the product should sufficiently cool the room it is installed in. If it fails to deliver the necessary cooling, you can ask for a replacement or refund.

Legal Terms Similar to Implied Warranty

  1. Express Warranty: A statement made by a seller to a buyer to ensure that the product will work as guaranteed.

  2. Warranty of Title: It ensures that the seller holds the ownership or title over the product and can sell it.

  3. Warranty of Workmanlike Quality: It assures that the goods or services offered to the buyer are crafted with care and skill.