- 07-Jun-2025
- Cyber and Technology Law
An implied warranty under Indian law refers to an unwritten guarantee that goods sold are fit for their intended use and are of satisfactory quality. Unlike express warranties, which are explicitly stated in contracts or agreements, implied warranties arise automatically by law and form part of the transaction between the seller and the buyer. These warranties protect consumers from receiving defective or substandard goods without having to make a formal claim.
In India, the concept of implied warranties is primarily governed by the Indian Contract Act, 1872, the Sale of Goods Act, 1930, and the Consumer Protection Act, 2019. These laws establish certain obligations for sellers to ensure that the goods they sell meet certain basic standards of quality and suitability.
According to the Sale of Goods Act, 1930, an implied warranty of merchantability exists in every contract for the sale of goods, unless the parties agree otherwise.
This warranty ensures that the goods sold are of satisfactory quality and fit for the purpose for which they are commonly sold. For instance, if a consumer buys a television, the implied warranty ensures that the television will work and meet the reasonable expectations of the consumer.
If the goods fail to meet these basic standards, the buyer may claim a breach of the implied warranty.
Another implied warranty exists when the buyer relies on the seller’s expertise to select goods for a particular purpose. Under Section 16 of the Sale of Goods Act, if a seller knows that the buyer is relying on their skill and judgment, there is an implied warranty that the goods are fit for the particular purpose for which they are bought.
For example, if a consumer buys a pair of shoes from a retailer and explicitly informs the retailer that the shoes are for running, the retailer implies that the shoes are suitable for that purpose. If the shoes fail to perform as expected, the consumer can claim a breach of the implied warranty.
Implied warranties also provide protection against hidden defects in goods. Even if a defect is not immediately visible, the seller is implied to ensure that the goods are free from any hidden defects that would affect their use or value.
If the goods turn out to have such defects, the buyer has the right to seek a remedy under Indian law, including a refund, repair, or replacement.
An implied warranty generally lasts for a reasonable period, depending on the nature of the goods. For example, the implied warranty of merchantability may last for the expected lifespan of the product, such as a year for electronics or a few months for food items.
The Consumer Protection Act, 2019 further strengthens this warranty, providing consumers with protection if the goods purchased fail to meet the implied warranty standards within a reasonable period.
Section 14 of the Indian Contract Act, 1872 establishes that a contract for the sale of goods implies that the goods will be of merchantable quality unless the buyer has examined them or the defect was apparent at the time of the sale.
Section 16 provides an implied warranty that goods sold will be fit for the particular purpose specified by the buyer, provided that the seller knows the purpose.
Section 12 of the Sale of Goods Act specifically deals with implied conditions related to the quality of goods. It ensures that goods sold are of merchantable quality and fit for the buyer's intended purpose, unless otherwise agreed upon.
This Act sets out the implied warranties that are automatically part of the contract of sale, protecting the buyer from defective or unsuitable goods.
The Consumer Protection Act, 2019 provides broader protection to consumers against defective or substandard goods. The Act ensures that products sold meet the implied warranty of quality and fitness.
If the goods sold are found to be defective or not in conformity with the implied warranty, consumers can file complaints with Consumer Forums for compensation or a refund.
Under this Act, consumers have a right to return goods or demand a remedy if the goods sold do not meet the standards implied by law.
A consumer buys a mobile phone from a retailer. The phone stops working within a month. Since the consumer bought the phone for general use and expected it to function properly, there is an implied warranty of merchantability that the phone should have lasted for a reasonable period. The consumer can claim a refund, repair, or replacement under the implied warranty.
A consumer purchases a pair of shoes from a store, explicitly stating they are for running. If the shoes are uncomfortable, fall apart, or cause injury within a short time, the consumer can claim a breach of the implied warranty of fitness for a particular purpose, as the shoes were meant for running, and they failed to meet the expected standard.
If the implied warranty is breached, the consumer has the right to:
Consumers can approach consumer courts or Consumer Protection Authorities for the resolution of disputes and seek appropriate compensation for the breach of implied warranty.
An implied warranty under Indian law provides vital protection to consumers by ensuring that the goods they purchase are of satisfactory quality, fit for their intended purpose, and free from hidden defects. These warranties are automatically implied by law and are part of the contract between the seller and the buyer, even without an express agreement. If these warranties are breached, consumers have legal recourse under the Sale of Goods Act, 1930, the Indian Contract Act, 1872, and the Consumer Protection Act, 2019 to seek remedies such as repair, replacement, or compensation.
Answer By Law4u Team
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