Certified Professional Public Buyer (CPPB) Practice Test

What is a key characteristic of implied warranties in contracts?

1. They must be explicitly stated

2. They are based on the conduct of the contractor

3. They provide guarantees not articulated in writing

4. They usually cover all aspects of performance

The correct answer is: They provide guarantees not articulated in writing

Implied warranties in contracts are indeed characterized by the provision of guarantees that are not explicitly articulated in writing. This means that even if a warranty is not formally documented, the law recognizes certain expectations and standards of quality or performance that are assumed to exist based on the nature of the transaction. For example, in the sale of goods, there is typically an implied warranty of merchantability, which indicates that the goods sold are fit for the ordinary purposes for which such goods are used. This expectation is established by law and the context of the contract, rather than being detailed within the written agreement. While options suggesting that implied warranties must be stated or cover all aspects of performance hint at the nature of contractual obligations, they don't capture the essence of what makes a warranty “implied.” The concept of implied warranties fundamentally relies on the understanding that certain guarantees exist even when not documented, reflecting societal expectations and legal norms in contractual relationships.