WARRANTY

warranty (wor-<<schwa>>n-tee orwahr-), n.1.Property. A covenant by which the grantor in a deed promises to secure to the grantee the estate conveyed in the deed, and pledges to compensate the grantee with other land if the grantee is evicted by someone having better title. • The covenant is binding on the grantor’s heirs. See COVE-NANT(4). Cf. quitclaim deed under DEED. [Cases: Covenants  45, 67. C.J.S. Covenants §§ 22, 29.]

collateral warranty.A warranty that is made by a stranger to the title, and that consequently runs only to the covenantee and not with the land. [Cases: Covenants  45, 67. C.J.S. Covenants §§ 22, 29.]

general warranty.A warranty against the claims of all persons. [Cases: Covenants  47, 67. C.J.S. Covenants §§ 23, 29.]

lineal warranty.Hist. A warranty existing when an heir derives title to land from the warrantor; a warranty from the same ancestor as the one from whom the land derived.

special warranty.A warranty against any person’s claim made by, through, or under the

grantor or the grantor’s heirs. [Cases: Covenants  48, 67. C.J.S. Covenants §§ 24, 29.]

2.Contracts. An express or implied promise that something in furtherance of the contract is guaranteed by one of the contracting parties; esp., a seller’s promise that the thing being sold is as represented or promised. • A warranty differs from a representation in four principal ways: (1) a warranty is an essential part of a contract, while a representation is usu. only a collateral inducement, (2) an express warranty is usu. written on the face of the contract, while a representation may be written or oral, (3) a warranty is conclusively presumed to be material, while the burden is on the party claiming breach to show that a representation is material, and (4) a warranty must be strictly complied with, while substantial truth is the only requirement for a representation. Cf. CONDITION(2), (3); GUARANTEE(1). [Cases: Contracts  205.5; Sales  246–288.5. C.J.S. Contracts § 341; Sales §§ 236–280, 282–284, 286, 288–289.]“[T]wo points must be borne in mind. In the first place, the words ‘condition’ and ‘warranty’ are not invariably kept as distinct as accuracy of definition demands; and in insurance law especially ‘warranty’ is very commonly used in the sense ascribed to ‘condition’ …. In the second place, the injured party, if he chooses to waive his right to repudiate the contract on breach of a condition, may still bring an action for such damages as he has sustained.” William R. Anson, Principles of the Law of Contract 223 (Arthur L. Corbin ed., 3d Am. ed. 1919).

as-is warranty.A warranty that goods are sold with all existing faults. See AS IS. [Cases: Sales  267. C.J.S. Sales §§ 238, 263–270.]

construction warranty.A warranty from the seller or building contractor of a new home that the home is free of structural, electrical, plumbing, and other defects and is fit for its intended purpose. [Cases: Contracts  205.35(2). C.J.S. Contracts § 359.]

deceptive warranty.A warranty containing false or fraudulent representations or promises. [Cases: Consumer Protection  6. C.J.S. Credit Reporting Agencies; Consumer Protection §§ 29–31, 33–39, 60–65.]

express warranty.A warranty created by the overt words or actions of the seller. • Under the UCC, an express warranty is created by any of the following: (1) an affirmation of fact or promise made by the seller to the buyer relating to the goods that becomes the basis of the bargain; (2) a description of the goods that becomes part of the basis of the bargain; or (3) a sample or model made part of the basis of the bargain. UCC § 2-313. [Cases: Con-tracts  205.10; Sales  259. C.J.S. Contracts § 359; Sales § 242.]

“An express warranty arises from the contract itself, from the ‘dickered’ aspects of the individual bargain. Any affirmation or promise relating to the goods, any description of the goods, and any sample or model of the goods becomes an express warranty if it is ‘part of the basis of the bargain.’ ” 1 Julian B. McDonnell & Elizabeth J. Coleman, Commercial and Consumer Warranties ¶ 1.02[1], at 1-7 (1991).

extended warranty.An additional warranty often sold with the purchase of consumer goods (such as appliances and motor vehicles) to cover repair costs not otherwise covered by a manufacturer’s standard warranty, by ex-tending either the standard-warranty coverage period or the range of defects covered. — Also termed extended service warranty; extended service contract.

[Cases: Sales  279. C.J.S. Sales §§ 249, 256, 258, 261, 283.]

full warranty.A warranty that fully covers labor and materials for repairs. • Under federal law, the warrantor must remedy the consumer product within a reasonable time and without charge after notice of a defect or malfunction. 15 USCA § 2304. See MAGNUSON–MOSS

WARRANTY ACT. Cf. limited warranty. [Cases: Consumer Pro-tection  6; Sales  279. C.J.S. Credit Reporting Agencies; Consumer Protection §§ 29–31, 33–39, 60–65; Sales §§ 249, 256, 258, 261, 283.]

implied warranty.An obligation imposed by the law when there has been no representation or promise; esp., a warranty arising by operation of law because of the circumstances of a sale, rather than by the seller’s express promise. [Cases: Contracts  205.15; Sales  262.5. C.J.S. Contracts § 359; Sales § 252.]

implied warranty of fitness for a particular purpose.A warranty — implied by law if the seller has reason to know of the buyer’s special purposes for the property — that the property is suitable for those purposes. — Sometimes shortened to warranty of fitness. [Cases: Contracts  205.15(3); Sales  273(1). C.J.S. Contracts §§ 347, 359; Sales §§ 258–260.]

“Those unfamiliar with the differences between the warranty of merchantability (fitness for the ordinary purposes for which such goods are used) and the warranty of fitness for a particular purpose often confuse the two; one can find many opinions in which the judges used the terms ‘merchantability’ and ‘fitness for a particular purpose’ interchangeably. Such confusion under the Code is inexcusable.” 1 James J. White & Robert S. Summers, Uniform Commercial Code § 9-10, at 527 (4th ed. 1995).

implied warranty of habitability.In a residential lease, a warranty from the landlord to the tenant that the leased property is fit to live in and that it will remain so during the term of the lease. — Also termed covenant of habi-tability. [Cases: Landlord and Tenant  125(1).]

implied warranty of merchantability.A warranty that the property is fit for the ordinary purposes for which it is used. • Under the UCC, an implied warranty of merchantability arises whenever a merchant sells goods unless the agreement expressly provides otherwise. UCC § 2-314. — Sometimes shortened to warranty of merchantability. [Cases: Contracts  205.15(3); Sales  272. C.J.S. Contracts §§ 347, 359; Sales §§ 254–256.]

“The implied warranty of merchantability attaches when the seller is a merchant with respect to the goods in-volved in the exchange. Accordingly, the product must meet certain standards; it must pass without objection in the trade under the contract description and it must be fit for the ordinary purposes for which such goods are used. The concepts of marketability, operability, and repairability have emerged as varying criteria for merchantable goods.” 1 Julian B. McDonnell & Elizabeth J. Coleman, Commercial and Consumer Warranties ¶ 1.02[1], at 1-7 (1991).

limited warranty.A warranty that does not fully cover labor and materials for repairs. • Under federal law, a limited warranty must be clearly labeled as such on the face of the warranty. See MAGNUSON–MOSS WARRANTY ACT. Cf. full warranty. [Cases: Sales  279. C.J.S. Sales §§ 249, 256, 258, 261, 283.]

personal warranty.A warranty arising from an obligation to pay all or part of the debt of another.

presentment warranty.An implied promise concerning the title and credibility of an instrument, made to a payor or acceptor upon presentment of the instrument for payment or acceptance. UCC § 3-417. [Cases: Banks and Banking  149, 174; Bills and Notes  296, 326. C.J.S. Banks and Banking §§ 416, 419, 421–434, 437–438; Bills and Notes; Letters of Credit §§ 162–165.]

transfer warranty. 1. An implied promise concerning the title and credibility of an instrument, made by a transferor to a transferee and, if the transfer is by indorsement, to remote transferees. UCC §§ 3-417, 4-207. [Cases: Banks and Banking  149, 174; Bills and Notes  296, 326. C.J.S. Banks and Banking §§ 416, 419, 421–434, 437–438; Bills and Notes; Letters of Credit§§ 162–165.] 2. A warranty made by a transferee of a document of title upon a transfer of the document for value to the immediate transferee. UCC § 7-507. [Cases: Carriers  58. C.J.S. Carriers §§ 400, 402.]

warranty ab initio (ab i-nish-ee-oh). An independent subsidiary promise whose breach does not discharge the contract, but gives to the injured party a right of action for the damage sustained as a result of the breach. Cf. warranty ex post facto. [Cases: Contracts  318; Sales  282. C.J.S. Contracts §§ 334, 450–455, 541–544; Sales §§ 237, 239, 251, 278–280.]

warranty against infringement.A merchant’s warranty that the goods being sold or licensed do not violate any patent, copyright, trademark, or other intellectual-property claim. • The warranty does not arise if the buyer provides the seller with the specifications for the goods purchased. Under § 2-312(3) of the Uniform Commercial Code, the warranty against infringement is a part of the warranty of title unless it is explicitly disclaimed.

warranty ex post facto (eks pohst fak-toh). A broken condition for which the injured party could void the contract, but decides instead to continue the contract, with a right of action for the broken condition (which amounts to a breached warranty). See CONDITION(2). Cf. warranty ab initio. [Cases: Contracts  318; Sales  282. C.J.S. Contracts §§ 334, 450–455, 541–544; Sales §§ 237, 239, 251, 278–280.] warranty of actual title.See warranty of title.

warranty of assignment.An assignor’s implied warranty that he or she (1) has the rights assigned, (2) will do nothing to interfere with those rights, and (3) knows of nothing that impairs the value of the assignment. [Cases: Assignments  97. C.J.S. Assignments § 90.]

warranty of authorship.Copyright. An author’s contractual warranty that the work is an original work by that author. [Cases: Copyrights and Intellectual Property  49. C.J.S. Copyrights and Intellectual Property §§ 27, 30, 33–34, 93.] warranty of fitness.See implied warranty of fitness for a particular purpose. warranty of merchantability.See implied warranty of merchantability.

warranty of title.A warranty that the seller or assignor of property has title to that property, that the transfer is rightful, and that there are no liens or other encumbrances beyond those that the buyer or assignee is aware of at the time of contracting. • This warranty arises automatically whenever anyone sells goods. — Also termed war-ranty of actual title. [Cases: Covenants  38–48, 62–67; Sales  263. C.J.S. Covenants §§ 14–24, 29, 46–47; Sales §§ 261, 272.]

written warranty.A warranty made in writing; specif., any written affirmation or promise by a supplier of a consumer product to a buyer (for purposes other than resale), forming the basis of the bargain and providing that the material or workmanship is free of defects or will be repaired or replaced free of charge if the product fails to meet the required specifications. 15 USCA § 2301. [Cases: Sales  260. C.J.S. Sales §§ 247–248, 265.]

Y2K warranty.See Y2KWARRANTY.

3.Insurance. A pledge or stipulation by the insured that the facts relating to the person insured, the thing insured, or the risk insured are as stated. [Cases: Insurance  2967, 3036. C.J.S. Insurance §§ 537, 539, 541–545, 566, 569, 587, 591–593, 596, 628–629, 634, 639, 702, 706, 708, 720, 761–763, 771, 775.]

affirmative warranty.A warranty — express or implied — that facts are as stated at the beginning of the policy period. • An affirmative warranty is usu. a condition precedent to the policy taking effect. [Cases: Insurance  2967. C.J.S. Insurance §§ 539, 541–545, 566, 587, 591–593, 596, 628, 702, 706, 708, 761–763, 775.]

executory warranty.A warranty that arises when an insured undertakes to perform some executory stipulation, such as a promise that certain acts will be done or that certain facts will continue to exist. [Cases: Insurance  3036. C.J.S. Insurance §§ 537, 542–545, 569, 629, 634, 639, 706, 720, 761–762, 771.]

promissory warranty.A warranty that facts will continue to be as stated throughout the policy period, such that a failure of the warranty provides the insurer with a defense to a claim under the policy. — Also termed continuing warranty. [Cases: Insurance  3036. C.J.S. Insurance §§ 537, 542–545, 569, 629, 634, 639, 706, 720, 761–762, 771.]
[Blacks Law 8th]