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

Rahul orders a laptop by asking for it under its well-known trade name, specifying the exact model. The laptop turns out unsuitable for his special video-rendering needs, which he never mentioned. Which statement is correct under Section 16 of the Sale of Goods Act, 1930?

No implied condition of fitness arises. The proviso to Section 16(1) says that when a specified article is sold under its patent or trade name, there is no implied condition as to fitness for any particular purpose. Rahul chose the branded model himself and did not rely on the seller's judgment.

  1. AThere is an implied condition of fitness because the seller deals in laptops
  2. BThere is no implied condition as to fitness for any particular purpose, as a specified article was sold under its trade nameCorrect
  3. CThe contract is void because the purpose was not stated
  4. DThere is an implied warranty, not a condition, of fitness

Explanation

The proviso to Section 16(1) states that in a contract for the sale of a specified article under its patent or other trade name, there is no implied condition as to fitness for any particular purpose. Rahul also did not rely on the seller's skill, so the option claiming an implied condition is wrong.

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