33:140:320 Lecture Notes - Lecture 21: Security Interest, Product Liability, Air Compressor
Document Summary
Warrant is an assurance by one party of the existence of a fact on which the other party can rely (goods will be presented as promised) Warranties of title: arises automatically in most sales contracts, good title. In most sales, sellers warrant that they have good and valid title to the goods sold and that transfer of the title is rightful. I. e. sharon steals goods from miguel and sells them to carrie, who does not know that the goods are stolen. Carrie, which he has a right to do; carrie can then sue sharon for breach of warranty. When sharon sold carrie the goods, sharon automatically warranted to her that the title conveyed was valid and that its transfer was rightful. Because this was not in fact the case, sharon breached the warranty of title and became liable to the buyer for the appropriate damages: no liens.
