In short
The warranty of merchantability, implied when the seller is a merchant, promises goods fit for their ordinary purpose. The warranty of fitness for a particular purpose arises when the seller knows the buyer's purpose and the buyer relies on the seller's skill.
Key takeaways
- A disclaimer of merchantability must mention the word 'merchantability' and, if written, be conspicuous.
- Phrases such as 'as is' disclaim both implied warranties.
- Express warranties are created by the seller's statements of fact, descriptions or samples.
Where it's tested
REG: Business Law: Contracts — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
On June 1, a merchant seller mails an offer to sell goods. On June 3, the seller mails a revocation. On June 4, the buyer mails an acceptance. On June 5, the buyer receives the revocation. Is there a contract?