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 Maryland, disclaimers in contracts are subject to both the Maryland Uniform Commercial Code (UCC) and federal law, particularly where the sale of goods is concerned. Under the Maryland UCC, which is based on the national model of the UCC, warranties can be either express or implied. Express warranties are affirmations of fact or promises made by the seller to the buyer, creating a basis of the bargain. Implied warranties include the warranty of merchantability, which ensures that goods are fit for the ordinary purposes for which such goods are used, and the warranty of fitness for a particular purpose, which applies when a buyer relies on the seller's skill or judgment to select suitable goods. Maryland law allows for the disclaimer or modification of warranties, but such disclaimers must be conspicuous and specific. For example, the disclaimer of the warranty of merchantability must mention the word 'merchantability' and, in the case of a written disclaimer, it must be in writing and generally needs to be conspicuous. Additionally, under the Magnuson-Moss Warranty Act, a federal law, if a warranty is provided, it must be designated as either 'full' or 'limited', and the act imposes certain requirements on the creation and terms of consumer product warranties. However, the act does not require that a warranty be provided. It's important for parties in Maryland to understand the specific requirements for disclaimers to ensure they are enforceable and to avoid penalties for improperly disclaiming warranties.