|
First Principles of Business Law |
| Statutory provisions affecting contracts for goods and services |
|
4. Enforcement of terms implied into sale contracts |
|
4.4. Excluding liability for the quality of goods |
|
Read the facts and the question and then choose the best answer. A, a manufacturer of clothing, sells a large quantity of winter coats to B, a clothing retailer, for a price of $50,000. There is nothing apparently wrong with the coats but A tells B that there has been industrial unrest in his factory and he is unwilling to guarantee the quality of workmanship. He and B agree that A is not liable under the sale even if some of the coats are not of merchantable quality. Can A and B effectively exclude by agreement a term that would otherwise be put (implied) by law in their contract? |
|
(a) Yes, the parties are free to exclude the terms implied into a contract by the sale of goods legislation. (b) No, the parties cannot agree to exclude the terms implied into a contract by the sale of goods legislation. |
|
|
|