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Explanation of Article 343

Explanation of Article 343

The article clarifies that the provisions of defect liability are not of public order, so it is permissible to agree otherwise. The contracting parties may agree to limit defect liability to the extent of complete exemption, such as when the seller stipulates no liability for any defect in the sold item, or stipulates reducing this liability without completely dropping it, such as stipulating that the buyer may only claim a certain amount even if it is less than the sale price. It is also permissible to agree to increase this liability, such as when the buyer stipulates the return of the entire sold item, both sound and defective, if some of it is found to be defective, even if it is divisible and its division does not harm the buyer.

An exception to the agreement on exemption from defect liability or its limitation is if the buyer proves that the seller knew of the defect and deliberately concealed it; in this case, the condition is void because it constitutes fraud.

In applying this article, it should be noted that if there is doubt in interpreting the condition, it is interpreted in favor of the party bearing its burden, in accordance with Article (104). Thus, in the case of stipulating exemption from all liability or its limitation, the doubt is interpreted in favor of the buyer, and in the case of stipulating an increase, the doubt is interpreted in favor of the seller.

Article 343

An agreement may be made to exempt the seller from the warranty against defects or to limit or extend such warranty, unless the seller has intentionally concealed the defects.