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

Consider these statements about implied terms under the Sale of Goods Act, 1930. (i) An express warranty or condition does not negative an implied one unless it is inconsistent with it. (ii) Implied rights, duties or liabilities may be negatived or varied by express agreement, course of dealing or a binding usage. (iii) An implied condition as to quality or fitness can never be annexed by trade usage. Which are correct?

Statements (i) and (ii) are correct. An express term does not remove an implied term unless inconsistent with it, and implied terms can be negatived or varied by agreement, course of dealing or binding usage. Statement (iii) is wrong because trade usage can annex implied conditions or warranties as to quality or fitness.

  1. A(i) and (iii) only
  2. B(ii) and (iii) only
  3. C(i) and (ii) onlyCorrect
  4. D(i), (ii) and (iii)

Explanation

Section 16(4) supports (i): an express term does not displace an implied term unless inconsistent. Section 62 supports (ii). Section 16(3) says an implied warranty or condition as to quality or fitness may be annexed by usage of trade, so (iii) is false.

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