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 Wyoming, as in other states, disclaimers in contracts are used to limit or exclude warranties that might otherwise be implied by law. Wyoming has adopted the Uniform Commercial Code (UCC), including Article 2, which pertains to the sale of goods. Under the UCC, sellers can disclaim implied warranties of merchantability and fitness for a particular purpose, but such disclaimers must be conspicuous and specific. For example, to disclaim the implied warranty of merchantability, the language must mention 'merchantability' and in the case of a written disclaimer, it must be conspicuous. To disclaim an implied warranty of fitness, the disclaimer must be in writing and conspicuous. However, there are limitations on the ability to disclaim warranties, and some disclaimers may not be enforceable if they are deemed unconscionable or if they violate other consumer protection laws. It is important for parties in Wyoming to understand the specific requirements and limitations for disclaimers to ensure they are valid and enforceable.