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CA Foundation · Business Laws · The Sale of Goods Act, 1930

Nisha buys 100 kg of a specified brand of cooking oil from Gupta Stores by sample. She tastes the sample and agrees to buy. On delivery she finds that the bulk is of poorer quality than the sample. Which statement is correct under the Sale of Goods Act, 1930?

Nisha can reject the goods. In a sale by sample, the law implies a condition that the bulk will correspond with the sample in quality. Because the bulk is poorer, this condition is breached, so she may repudiate the contract, and her prior inspection of the sample does not take that right away.

  1. ANisha can reject the goods because there is an implied condition that the bulk will correspond with the sampleCorrect
  2. BNisha can only claim damages because the breach is of a warranty
  3. CNisha cannot reject the goods because she had examined the sample
  4. DNisha can reject only if the contract expressly states that bulk must match the sample

Explanation

In a sale by sample there is an implied condition that the bulk will correspond with the sample in quality. It is also implied that the buyer will have a reasonable opportunity to compare bulk with sample. Since the bulk is inferior, the condition is breached and Nisha can reject. Examining the sample does not remove this right, as the defect lies in the bulk differing from the sample.

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