Colorado Code
Part 3 - General Obligation and Construction of Contract
§ 4-2-318. Third Party Beneficiaries of Warranties Express or Implied

A seller's warranty whether express or implied extends to any person who may reasonably be expected to use, consume, or be affected by the goods and who is injured by breach of the warranty. A seller may not exclude or limit the operation of this section.
Source: L. 65: p. 1312, § 1. C.R.S. 1963: § 155-2-318.
Editor's note - Colorado legislative change: Colorado changed "natural person who is in the family or household of his buyer or who is a guest in his home if it is reasonable to expect that such person may" to read "person who may reasonably be expected to".
Prior Uniform Statutory Provision: None.
Purposes:



The second alternative is designed for states where the case law has already developed further and for those that desire to expand the class of beneficiaries. The third alternative goes further, following the trend of modern decisions as indicated by Restatement of Torts 2d § 402A (Tentative Draft No. 10, 1965) in extending the rule beyond injuries to the person [As amended in 1966].
Cross References:
Point 1: Sections 4-2-316, 4-2-718 and 4-2-719.
Point 2: Section 4-2-314.
Definitional Cross References:
"Buyer". Section 4-2-103.
"Goods". Section 4-2-105.
"Seller". Section 4-2-103.
COLORADO COMMENT
This section, as amended by Colorado, extends to any person reasonably expected to use, consume, or be affected by goods the same warranty which the buyer received in the contract of sale, thereby freeing any such beneficiaries from any technical rules as to "privity". The Colorado change enlarges the potential liability of a seller by extending the warranty to other persons in the distributive chain. This section seeks to accomplish this purpose without any derogation of any right or remedy resting on negligence. It rests primarily upon the merchant-seller's warranty under this Article that the goods sold are merchantable and fit for the ordinary purposes for which such goods are used rather than the warranty of fitness for a particular purpose. Implicit in the section is that any beneficiary of a warranty may bring a direct action for breach of warranty against the seller whose warranty extends to him.

Structure Colorado Code

Colorado Code

Title 4 - Uniform Commercial Code

Article 2 - Sales

Part 3 - General Obligation and Construction of Contract

§ 4-2-301. General Obligations of Parties

§ 4-2-302. Unconscionable Contract or Clause

§ 4-2-303. Allocation or Division of Risks

§ 4-2-304. Price Payable in Money, Goods, Realty, or Otherwise

§ 4-2-305. Open Price Term

§ 4-2-306. Output, Requirements, and Exclusive Dealings

§ 4-2-307. Delivery in Single Lot or Several Lots

§ 4-2-308. Absence of Specified Place for Delivery

§ 4-2-309. Absence of Specific Time Provisions - Notice of Termination

§ 4-2-310. Open Time for Payment or Running of Credit - Authority to Ship Under Reservation

§ 4-2-311. Options and Cooperation Respecting Performance

§ 4-2-312. Warranty of Title and Against Infringement - Buyer's Obligation Against Infringement

§ 4-2-313. Express Warranties by Affirmation, Promise, Description, Sample

§ 4-2-314. Implied Warranty - Merchantability - Usage of Trade

§ 4-2-315. Implied Warranty - Fitness for Particular Purpose

§ 4-2-316. Exclusion or Modification of Warranties

§ 4-2-317. Cumulation and Conflict of Warranties Express or Implied

§ 4-2-318. Third Party Beneficiaries of Warranties Express or Implied

§ 4-2-319. f.o.b. and f.a.s. Terms

§ 4-2-320. c.i.f. and C. & F. Terms

§ 4-2-321. c.i.f. or C. & F. - "Net Landed Weights" - "Payment on Arrival" - Warranty of Condition on Arrival

§ 4-2-322. Delivery "Ex-Ship"

§ 4-2-323. Form of Bill of Lading Required in Overseas Shipment - "Overseas"

§ 4-2-324. "No Arrival, No Sale" Term

§ 4-2-325. "Letter of Credit" - "Confirmed Credit"

§ 4-2-326. Sale on Approval and Sale or Return - Rights of Creditors

§ 4-2-327. Special Incidents of Sale on Approval and Sale or Return

§ 4-2-328. Sale by Auction