Also known as:implied warranties doctrine · implied warranty · implied warranties · doctrine of implied warranty
Written by attorneys · grounded in primary & secondary sources — see below
A legal principle under which warranties are implied by operation of law in specified transactions. The principle supplies an implied warranty that leased residential premises are free from dangerous conditions violating habitability standards and that newly constructed homes are built in a reasonably workmanlike manner suitable for human habitation.
Sources & Authorities
How it applies
Common Examples
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Landlord Liability for Defective Lighting
Imperial Motors leased an exhibition hall to Insight Consulting for boxing events while retaining control of the interior lighting. A spectator fell through an unrepaired floor opening near the restrooms and suffered serious injuries. The tenant sued the landlord for failing to address the dangerous condition that violated the implied warranty of habitability.
Subsequent Buyer Sues Builder
Imperial Motors built and sold a new home to India Inoue featuring integrated solar systems. Inoue later conveyed the property to Ivy Ibarra. Ibarra discovered latent mounting and wiring defects that created fire risks and rendered the home unsafe. Ibarra sued the original builder despite lacking direct privity.
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Cases
Uniform Acts
Restatements
Hornbooks
As-Is Clause Bars Warranty Claim
Iris Energy sold used generators to Imran Iyer under a contract containing prominent as-is language. Iyer later discovered corrosion that an ordinary inspection would have revealed. Iyer attempted to assert an implied warranty claim against the seller.
Landlord Liability to Neighbors
Indigo Textiles leased a warehouse to Ira Irving while retaining repair obligations for the exterior walls. A crumbling wall later collapsed onto an adjacent property owned by Isla Ireland. Ireland sued the landlord for physical harm caused by the unrepaired condition violating the implied warranty of habitability.
Privity Dispute in New Construction
Insight Consulting built a new subdivision home and sold it to Ibrahim Iqbal. Iqbal resold the property months later to India Inoue. Inoue discovered structural defects that made portions uninhabitable and sued the original builder for breach of the implied warranty.
Buyer Examination Precludes Warranty
Imperial Motors offered used machinery to Ivy Ibarra after allowing her full access to inspect the equipment. Ibarra declined a detailed examination and later discovered defects that the inspection would have revealed. Ibarra asserted an implied warranty claim against the seller.
Common questions
Frequently Asked
3
Does the implied warranty of habitability extend to subsequent purchasers of new homes?+
Authority is divided. Some jurisdictions limit enforcement to the original buyer in privity with the builder while others allow subsequent purchasers to enforce the warranty when latent defects affect habitability.
Supporting sources
When does an as-is clause exclude implied warranties under the UCC?+
An as-is clause excludes implied warranties when the language is conspicuous and calls the buyer's attention to the fact that no warranty is being made unless surrounding circumstances indicate otherwise.
Supporting sources
What must a plaintiff show to recover under the implied warranty of habitability in a lease?+
The plaintiff must prove a dangerous condition existed before or after possession, the landlord failed to exercise reasonable care to repair it, and the condition violated the implied warranty of habitability.
Supporting sources
476 U.S. 858, 106 S.Ct. 2295, 90 L.Ed.2d 865 (1986)Torts
…has received “insufficient product value.” The maintenance of product value and quality is precisely the purpose of express and implied warranties.[^maj-5] Therefore, a claim of a nonworking product can be brought as a breach-of-warranty action. Or, if the customer prefers, it can reject the product or revoke its acceptance and sue…
ContractsFormation of contracts · Mutual assent (including offer and acceptance, and unilateral, bilateral, and implied-in-fact contracts)UBEFoundational