Dictionary of Procurement Terms

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Search Results: 1-1 of 1 result for “Implied Warranty of Fitness for a Particular Purpose”

  • Implied Warranty of Fitness for a Particular Purpose

    A warranty that applies to an instance where the seller, at time of contracting, has reason to know that the buyer wants the goods for a particular purpose and the buyer is relying on the seller’s skill or judgment to select or furnish suitable goods. Example: A sawmill operator described in detail the mill’s hydraulic system and asked a major oil company’s representative to recommend proper oil. After some time, the operator discovered that the oil was not the proper product and was the cause of the hydraulic system’s frequent breakdowns. The oil company’s representative had to pay damages to the mill operator due to a breach of the implied warranty of fitness for a particular purpose.