implied warranty

  

Definition

Integral part of every normal sales transaction, implied warranty is conferred by custom or law, and has the same effect as an express-warranty. Unless clearly negated through mutual agreement or a disclaimer, implied warranties are always present and are enforceable even if the seller (or provider or manufacturer) is unaware of, or is unable to, discover the defect in the product (good or service). The seller remains liable for the breach of warranty penalties, because such warranties are based not on the presence of an inherent fault but on the public policy of protecting the buyer or consumer. In marine insurance, for example, the principal implied warranties are (1) seaworthiness of the vessel, (2) non-deviation from the route, and (3) legality of the venture.

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