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Provision of Guarantee under the New Civil Code

2016/08/12
4 minutes to read

The question of the retention or non-retention of the existence of statutory warranty in the new Civil Code (Act No. 89/2012 Coll.) has been widely discussed in the media and in professional contributions. Unfortunately, not with an entirely unambiguous conclusion. Somewhat on the periphery of interest of this popular issue stands the legal regulation of warranty provided contractually or by unilateral manifestation of will. We shall therefore briefly address this question in this legal circular.

The basic provision concerning warranty is contained in Section 1919(1) of the Civil Code, which establishes that “where the transferor assumes a warranty for quality, he warrants that the subject of performance will be fit for the agreed purpose for a certain period after performance and that it will retain the agreed properties; if not agreed, the warranty relates to the usual purpose and properties.” The methods of providing warranty are then defined (incompletely) in the first sentence of Section 1919(2) of the Civil Code: “Where warranty is not agreed in the contract, the transferor may assume it by declaration in a warranty certificate, or by indicating the warranty period or the period of usability or durability of the thing on the packaging.” This means that the provision of warranty may also occur under the current regulation by unilateral manifestation of will - by declaration in a warranty certificate. Newly, warranty will also arise by indicating the warranty period or the period of usability or durability of the thing on the packaging of goods. In respect of this fact, traders should therefore be cautious.

The further sentences of Section 1919(2) of the Civil Code then regulate the relationship between the individual methods of providing warranty. It is provided here that “where a warranty period different from the warranty period stated on the packaging is agreed in the contract, what was agreed shall apply. Where a warranty period longer than the period agreed or indicated on the packaging is stated in the warranty certificate, this longer warranty period shall apply.”

An interesting, although not entirely logical fact, is that the method of providing warranty is regulated by the Civil Code, in addition to the above, in two further places (moreover always in slightly different wording), namely within the general provisions on the contract of sale and further within the special provisions on the sale of goods in a shop.

Specifically, Section 2113 of the Civil Code provides that “by warranty for quality the seller undertakes that the thing will be fit for the usual purpose for a certain period or that it will retain the usual properties. The same effects are produced by stating the warranty period or the period of usability of the thing on the packaging or in advertising. Warranty may also be provided for an individual component of the thing.” Within this provision, therefore, a further method of providing warranty to the purchaser is established, namely by stating it in advertising. Naturally, the introduction of the creation of warranty in this manner brings with it a whole series of questions. For example, in advertising practice the intention of the advertiser regarding the provision of warranty is often directed only to certain parts of the product (car bodywork, etc.). Section 2114 of the Civil Code then again regulates the relationship between the individual methods of providing warranty, with the relationship to the situation where warranty is provided by advertising not being further addressed in any way. Section 2114 of the Civil Code states that “where the contract and the warranty declaration determine different warranty periods, the longest period of them shall apply. However, where the parties agree a different warranty period from that indicated on the packaging as the period of usability, the agreement of the parties shall take precedence.”

Finally, in Section 2165(2) of the Civil Code it is again mentioned that “where a period during which the thing may be used is stated on the thing sold, on its packaging, in instructions attached to the thing or in advertising in accordance with other legal regulations, the provisions on warranty for quality shall apply.”

Although the above legislative solution is not particularly clear and its consequences are not entirely clear at this moment, it is possible to state on our part that, with effect from 1/1/2014, warranty may be provided, in addition to the traditional methods, also by stating the warranty period or the period of usability of the thing on the packaging or by stating information about the warranty in advertising. Particularly in these areas it is therefore advisable for traders to exercise appropriate caution.

Josef Aujezdský

Law Office Mašek, Kočí, Aujezdský www.e-Advokacie.cz – on-line legal advice

This text was originally prepared by the law office Mašek, Kočí, Aujezdský in cooperation with the association Association for Electronic Commerce (APEK) as legal circular No. 6/2014 intended for members of this association.

This text was translated from Czech to English using an AI translator.

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