If the seller bears the risk of loss, he must send another shipment of goods to the buyer or pay damages to the buyer if the goods are damaged before delivery. If the buyer bears the risk of loss, the buyer must pay for the goods, even if they are damaged during shipment. In addition, a seller may expressly refuse or modify implied warranties under the PEC. In the absence of a written sales contract, certain warranties relating to the goods may apply either automatically or not at all. Warranties are legally enforceable commitments or warranties that assure the buyer that certain facts or conditions regarding the goods are accurate. According to the Commercial Uniform (UCC), there are two types of warranties – explicit warranties and implied warranties. Here are some examples of potential sellers and buyers who need to use this agreement. 5. Ensure fitness for a particular purpose: if seller knows or should know that (1) buyer intends to use the goods for specific purposes and (2) buyer relies on seller`s ability or judgment to select the appropriate goods, an implied warranty that the goods fit for that purpose when produced. An example is a homeowner who buys paint to paint a house. If the seller recommends a particular color, but that color is not suitable for painting the houses, the seller has violated this implied warranty of fitness for a particular purpose.

Do you want to buy or sell personal property instead? Use our sales contract for personal real estate. .