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 Oklahoma, disclaimers in contracts are subject to both the Uniform Commercial Code (UCC) as adopted by the state and relevant case law. Under Oklahoma law, particularly Title 12A (the UCC), Section 2-316, disclaimers of warranties in the sale of goods are permitted but must be conspicuous and specific. The law allows for the disclaimer of implied warranties, such as the warranty of merchantability or fitness for a particular purpose, but such disclaimers must be in writing and brought to the attention of the buyer. Oral disclaimers of implied warranties are generally not effective. Furthermore, to disclaim the warranty of merchantability, the language must mention 'merchantability,' and if it is in writing, it must be conspicuous. Disclaimers of the warranty of fitness for a particular purpose must also be in writing and conspicuous. Oklahoma does not categorically prohibit disclaimers of warranties, but they must comply with these statutory requirements to be valid. Additionally, the Oklahoma Consumer Protection Act provides certain protections against deceptive trade practices, which could impact the enforceability of some disclaimers. As with any legal document, it is advisable to consult with an attorney to ensure that contract disclaimers are drafted in compliance with applicable laws and are enforceable.