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 South Carolina, disclaimers in contracts are subject to both the Uniform Commercial Code (UCC) as adopted by the state and relevant case law. Under the South Carolina Code, particularly in Title 36 which pertains to commercial law, Article 2 of the UCC governs the sale of goods and includes provisions about warranties and their disclaimers. Express warranties can be created by the seller through claims about the product, descriptions, or samples. Implied warranties, such as the warranty of merchantability or fitness for a particular purpose, arise by operation of law. However, these implied warranties can be disclaimed if the disclaimer is in writing, conspicuous, and specifically mentions merchantability. For the disclaimer of the warranty of fitness for a particular purpose, it must be in writing and conspicuous. South Carolina law requires that such disclaimers be presented in a clear and unambiguous manner to be effective. If a disclaimer does not meet these requirements, it may be deemed ineffective, and the seller could be held liable for breach of warranty. It is important for parties in South Carolina to understand the specific requirements for disclaiming warranties to ensure that any such disclaimers are legally enforceable and to avoid penalties for attempting to disclaim warranties in a manner that is not permitted by law.