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

Consider these statements about implied conditions as to quality under the Sale of Goods Act, 1930. I. Where goods are bought by description from a seller who deals in goods of that description, there is an implied condition of merchantable quality. II. If the buyer has examined the goods, there is no implied condition as regards defects which such examination ought to have revealed. III. An implied condition as to quality can never be annexed by usage of trade. Which statements are correct?

Statements I and II only are correct. Goods bought by description from a dealer carry an implied condition of merchantable quality, except for defects a buyer's examination ought to have revealed. Statement III is wrong because usage of trade can annex implied conditions or warranties.

  1. AI and II onlyCorrect
  2. BII and III only
  3. CI and III only
  4. DI, II and III

Explanation

Section 16(2) gives the implied condition of merchantable quality for goods bought by description from a seller who deals in them, with the proviso excluding defects an examination ought to have revealed. Statement III is wrong because Section 16(3) allows an implied warranty or condition as to quality or fitness to be annexed by usage of trade.

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