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CHAPTER II FORMATION OF THE CONTRACT · Conditions and waranties

Section 16: Implied conditions as to quality or fitness

The Sale of Goods Act, 1930

Subject to the provisions of this Act and of any other law for the time being in force, there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale, except as follows:—

(1) Where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required, so as to show that the buyer relies on the seller’s skill or judgment, and the goods are of a description which it is in the course of the seller’s business to supply (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be reasonably fit for such purpose:

Provided that, in the case of a contract for the sale of a specified article under its patent or other trade name, there is no implied condition as to its fitness for any particular purpose.

(2) Where goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be of merchantable quality:

Provided that, if the buyer has examined the goods, there shall be no implied condition as regards defects which such examination ought to have revealed.

(3) An implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.

(4) An express warranty or condition does not negative a warranty or condition implied by this Act unless inconsistent therewith.

Questions on this section

4 questions in 8 of our papers cite Section 16. Try these from the free papers:

  1. 1. "Caveat emptor" means:

  2. 2. B walks into a hardware shop and asks for a water pump by its trade name, "Aquaforce X". He chooses it on his own judgment, does not tell the dealer what he needs it for, and does not rely on the dealer's skill. The pump works properly but cannot lift water from B's deep borewell. Under Section 16 of the Sale of Goods Act, 1930:

  3. 3. Under the proviso to Section 16(2) of the Sale of Goods Act, 1930, where the buyer has examined the goods, there is no implied condition of merchantable quality as regards:

Practise questions on Partnership and Sale of Goods Acts