Ditial Clock

Friday, October 5, 2012

The Sale of Goods Act-1930



 
The Sale of Goods Act-1930
 
Implied Conditions 
 
Condition as to title:
   There is an implied condition on the part of the seller that, in the case of a sale he has the right to sell the goods, and in the case of agreement to sell, he will have the right to sell the goods at the time when he property is to pass. Sec. 14 (a)
 
Example, R bought  a motor car from D and use it for four months. D had no title to the car. R was forced to return the car to the true owner.
Held, there is a breach of the implied condition as to title and R is entitled to  get back the purchase money paid not withstanding the fact that he has used the car for 4 months.
      -Rowland v. Divell, 1923
 
2.Sale by Description:
Where there is a contract of for the sale of goods by description, there is a implied condition that the goods shall correspond with the description. Sec.-15
Goods are to be sold by description when the contract contains a description of the goods to be supplied.
 
 
M sold to L, 3000 cases of canned fruits, each case to contain 30 tins. M delivered 3000 cases, but about half the cases contain 24 tins each. Although the market value of the 24 tins cases were the same as the 30 tin cases, it was held that the buyer was entitled to reject the goods.
       - Re Moore & Co. v Landauer & Co. 1921 
 
3.Sale by Sample:
When goods are to be supplied according to a sample agreed upon, the following conditions are implied-
(a)The bulk shall correspond with the sample in quality,
(b)The buyer shall have a reasonable opportunity of comparing the goods with the sample,
(c)The goods shall be free from any defect rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.
 
4.Sale by Sample as well as description:
 When goods are sold by sample as well as by description, the goods shall correspond both with the sample and with the description.
      -Sec.15
5. Implied condition as to quality or fitness:
There is an implied condition as to quality or fitness for the purpose of the buyer under the following circumstances:
 
(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. 
 
(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.
Merchantable quality means fit for sell or use.
 
Example for 01-
M, a milk dealer supplies F with milk which was consumed by F and his family. The milk contained germs of typhoid. F’s wife was infected and died.
Held, there was a breach of an implied condition of fitness and M was liable to pay damages.
      - Frost v. Aylesbury Dairy co. 1905
 
Example for 02-
M asked for a bottle of Stone’s ginger wine in a restaurant. When he was drawwing the cork the bottle broke and M was injured.
Held, the sale was one by description and since the bottle was unmerchantable, M was entitled to recover damages.
       - Morelli v. Fitch Gibbons, 1928
 

1 comment: