Disclaimers in contracts are generally included when one party wants to sell a product or service without any guarantee of its quality (merchantability) or suitability for the buyer’s intended use. Guarantees of a product’s quality or suitability are also known as warranties, and may be implied in the parties’ agreement without being written or spoken—usually by virtue of a state’s statutes adopting the Uniform Commercial Code’s provisions governing the sale of goods (Article 2)—or by court opinions (also known as common law or case law). Some states have laws (statutes) that prohibit the disclaimer of warranties; make disclaimers ineffective; and penalize parties who attempt to disclaim such warranties. Disclaimers in contracts also serve as an explicit warning to the parties of the risks in a sale or transaction and help avoid a subsequent claim that a party was unaware of such risks or was deceived regarding the presence of such risks.
In Louisiana (LA), disclaimers in contracts are subject to both the Louisiana Civil Code and the Uniform Commercial Code (UCC) as adopted by the state. Louisiana's approach to warranties and disclaimers is unique due to its civil law tradition. Under the Louisiana Civil Code, warranties can be express or implied. Implied warranties can arise from the nature of the agreement or the law. However, parties in a contract can disclaim or limit these warranties, provided such disclaimers are clear and specific. The UCC, which Louisiana has adopted with some modifications, also allows for the disclaimer of warranties, including the warranty of merchantability and the warranty of fitness for a particular purpose, but requires that disclaimers be presented in a conspicuous manner to be valid. It's important to note that certain consumer protection laws may limit the ability to disclaim warranties in consumer transactions. As such, disclaimers must be carefully drafted to comply with relevant state statutes and to ensure they are enforceable in court.