The Fraud Act requires certain types of contracts to be written so that they can be applied in court. This situation is governed by cases where land rights are transferred to a buyer and high-priced goods are sold. Although oral agreements are still acceptable today, it is strongly advised to write them down in order to avoid litigation and protect the best interests of your business. It is preferable not to accept oral statements or amendments, unless they are documented on paper. In the absence of a written sales contract, certain merchandise guarantees may apply either automatically or not at all. Guarantees are legally enforceable commitments or guarantees that assure the buyer that certain facts or conditions regarding the goods are accurate. According to the Commercial Uniform (UCC), there are two types of guarantees – explicit guarantees and unspoken guarantees. When an order product is required in accordance with the buyer`s plans, designs or specifications, the seller agrees to pay the amount of a final judgment against the purchaser resulting from a lawsuit which alleges that all commercial products manufactured or offered in this case infringe, because of their manufacture, sale or use, a U.S. patent as of the date of the contract date. , and the reasonable costs and expenses of the purchaser in the defence of such an action, if the seller does not defend it, if the seller does not defend it, provided that the seller is immediately informed of the threat or the beginning of such an action and that he is offered full and exclusive control to bring a lawsuit.
The seller`s compensation does not apply if a violation is not due to the normal use to which the products were intended. There is no liability for the violation, real or presumed, of a foreign patent. The seller`s liability for damage under this directive is limited to those that are calculated solely on the value of the products sold to the buyer. Under no circumstances is the seller liable for any consequential damages or costs. In the case of a claim that violates a U.S. patent, the seller may, on its option and cost (a) give the buyer the right to continue to use the product, or (b) replace or modify the product so that it does not become a violation of the law, or (c) grant the buyer a credit for that product, net of a reasonable depreciation for use , damage and teaching when returning to the seller. The buyer agrees to pay all the costs and expenses incurred by the seller in his defence and the amount of a judgment against the seller, in the context of an action or proceeding against the seller that results exclusively from the fact that the buyer associates each proposed product with an item that is not manufactured or made available by the seller , or the sale or use of such a combination by the buyer.