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Extension of Warranties to Remote Purchasers

Situations often arise where someone who purchases goods from the original buyer bring an action for breach of warranty against the original seller. The general rule under the UCC is that a buyer must have privity of contract with the original seller in order to recover for breach of either an express or an implied warranty. In other words, the person who actually purchased the goods from the buyer is the only person who can sue for breach of a warranty.

Some exceptions to this general rule may apply. For example, a third-party beneficiary to a seller’s promise may recover from the seller even in the absence of privity of contract between the seller and the eventual buyer. The revised Article 2 of the UCC includes two new provisions that extend warranties to remote purchasers in some other circumstances, but as noted above, no state has adopted the revised Article 2.

Inside Extension of Warranties to Remote Purchasers