Skip to content

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

Rahul Traders agreed to sell wheat to Kavita Mills, and the contract expressly stated that the seller gives no implied condition as to quality, and Kavita Mills signed it knowingly. The wheat was of poor quality. Which proposition best reflects the Sale of Goods Act, 1930?

The exclusion is effective. Section 62 allows any right, duty or liability arising by implication of law to be negatived or varied by express agreement, by course of dealing, or by binding usage. Express agreement alone is enough, so Kavita Mills cannot rely on implied quality terms.

  1. AThe exclusion is ineffective, because implied conditions can never be varied
  2. BThe exclusion is effective, because a right, duty or liability arising by implication of law may be negatived or varied by express agreementCorrect
  3. CThe exclusion is effective only if the buyer examined the goods
  4. DThe exclusion is effective only if the usage of trade supports it

Explanation

Section 62 provides that a right, duty or liability arising under a contract of sale by implication of law may be negatived or varied by express agreement, course of dealing, or binding usage. Express agreement alone suffices, so examination or usage is not a prerequisite. Option A contradicts Section 62.

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