Skip to content

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

Meera buys a washing machine from a dealer who sells such machines in the course of business. She tells the dealer that she needs a machine suitable for heavy woollen blankets, relying on his judgment, and he supplies one. Under the Sale of Goods Act, 1930, which implied term arises from these facts?

There is an implied condition that the machine is reasonably fit for the purpose Meera disclosed. She told the dealer her purpose and relied on his skill or judgment, and he deals in such goods. Under Section 16(1) it does not matter that he is not the manufacturer.

  1. AAn implied condition that the goods shall be reasonably fit for the purpose made knownCorrect
  2. BAn implied warranty that the price is the market price
  3. CNo implied term, because the dealer is not the manufacturer
  4. DAn implied condition that the buyer may return goods within seven days

Explanation

Section 16(1) provides that where the buyer makes known the particular purpose, shows reliance on the seller's skill or judgment, and the goods are of a description the seller supplies in the course of business, there is an implied condition of reasonable fitness. It is irrelevant whether the seller is the manufacturer, so the option denying a term because he is only a dealer is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Law relating to Sale of Goods shows your real accuracy, how long you take and where you lose marks.

Practise Elements of Law relating to Sale of GoodsFree diagnostic mock

More Elements of Law relating to Sale of Goods questions