merchantable

Merchantable is an adjective used in law and commerce to describe goods that are of merchantable quality and fit for the ordinary purposes for which such goods are used.

In contract law, the implied warranty of merchantability arises in the sale of goods by a merchant—someone who deals in goods of the kind sold. The warranty requires that the goods meet a standard of average quality within the category, be fit for ordinary use, pass without objection in the trade, and conform to any promises or labels. It does not guarantee perfection, but it does require that the product is usable and safe for its intended purpose under normal conditions.

Disclaimers and limitations: The Uniform Commercial Code allows sellers to disclaim or modify the warranty with conspicuous language, commonly in phrases like “as is” or “with all faults.” Remedies for breach typically include repair, replacement, or refund, along with incidental and, in some cases, consequential damages, depending on the circumstances and governing law.

Scope and variation: The warranty generally applies when the seller is a merchant and the buyer relies on the seller’s expertise or description. Standards can vary by jurisdiction and by type of goods. Some jurisdictions recognize warranties of merchantability for consumer goods, while others may require different considerations for commercial buyers or specialized goods.

Relation to other warranties: Merchantability is distinct from the warranty of fitness for a particular purpose, which covers goods chosen for a specific use known to the seller and relied upon by the buyer.

Related term: In real estate, the closely related concept is marketable title rather than merchantable title.