Which term describes the implied promise that the seller has legal ownership of the goods and has no undisclosed liens?

Which term describes the implied promise that the seller has legal ownership of the goods and has no undisclosed liens?

• A. Implied warranty of title
• B. Uniform Commercial Code (UCC)
• C. Primary liability
• D. Real defense

Answer: (A)

Implied warranty of title is the promise that the seller owns the goods and has the right to transfer their ownership, and that the goods are free from undisclosed liens or encumbrances. This warranty is created by the Uniform Commercial Code in a sale of goods and applies automatically unless the contract explicitly disclaims or modifies it. It protects the buyer by ensuring that the title transferred is valid and clear of third-party claims; if the seller lacks title or there are undisclosed liens, the buyer can sue for breach of this warranty to recover damages or to obtain the proper title. The other options refer to broader concepts: the Uniform Commercial Code is the body of law governing sales, not the promise itself; primary liability concerns who is legally responsible for a loss, and real defense are defenses to enforcement rather than the seller’s implied promise about title.

Implied warranty of title is the promise that the seller owns the goods and has the right to transfer their ownership, and that the goods are free from undisclosed liens or encumbrances. This warranty is created by the Uniform Commercial Code in a sale of goods and applies automatically unless the contract explicitly disclaims or modifies it. It protects the buyer by ensuring that the title transferred is valid and clear of third-party claims; if the seller lacks title or there are undisclosed liens, the buyer can sue for breach of this warranty to recover damages or to obtain the proper title. The other options refer to broader concepts: the Uniform Commercial Code is the body of law governing sales, not the promise itself; primary liability concerns who is legally responsible for a loss, and real defense are defenses to enforcement rather than the seller’s implied promise about title.