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CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods

Anita buys 100 bags of wheat from Gupta Stores, having examined the goods. The contract says in writing that the seller gives no guarantee about quality, and the parties' course of dealing has always been on that basis. Later she finds ordinary quality defects that her examination would have revealed. Which view is correct under the Act?

She has no remedy on implied merchantable quality. The buyer examined the goods and the defects were ones the examination ought to have revealed, and in any case Section 62 permits implied terms to be negatived by express agreement or course of dealing between the parties.

  1. AShe has no remedy on implied merchantable quality, as the examination proviso applies and implied terms may be negatived by express agreement or course of dealingCorrect
  2. BShe can reject the goods because implied conditions can never be excluded
  3. CShe can reject only if the seller is also the manufacturer
  4. DShe has a remedy because payment and delivery are concurrent conditions

Explanation

Under the merchantable quality rule, no condition is implied for defects an examination ought to have revealed. Separately, Section 62 allows implied rights, duties or liabilities to be negatived or varied by express agreement or course of dealing. Option B contradicts Section 62. Option D confuses Section 32, which concerns delivery and payment, not quality.

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