| Commentary

51.2.3 Sub-buyers

| Commentary

51.2.3 Sub-buyers

A seller’s indemnity may sometimes cover claims by sub-buyers and end-users, for example:

‘The Seller shall indemnify the Buyer against all claims by the customers of the Buyer and their sub-buyers arising out of any breach whatever by the Seller of this contract of sale due to want of satisfactory quality or lack of fitness for the purpose of the goods or any of the goods.’

Such a clause implies an obligation to repair or replace defective goods even after they have been sold on by the original buyer. If the seller is to assume this risk, the

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