Facts
The case concerns a purchase contract between the plaintiff and the defendant car dealer. The defendant relied on a disclaimer clause in the contract to exclude the statutory warranty claims and damages. The plaintiff, however, argued that the defendant had made a warranty regarding the mileage of the vehicle, which could not be excluded by the disclaimer clause.
The Federal Supreme Court had to decide whether the defendant's statement about the characteristics should be considered a warranty or fall under the disclaimer clause.
Considerations
The Federal Supreme Court stated that it must be determined through contract interpretation whether a statement about characteristics is to be considered a warranty or falls under a disclaimer clause. The two possibilities are mutually exclusive.
In the present case, it was important for the plaintiff to learn the exact mileage from the defendant, who was knowledgeable in the industry. The defendant had to expect in good faith that the plaintiff would rely on his information.…