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

Under the Sale of Goods Act, 1930, where a buyer makes known to the seller the particular purpose for which goods are required, relying on the seller's skill or judgment, and the goods are of a description the seller ordinarily supplies, what is implied?

There is an implied condition that the goods shall be reasonably fit for the purpose made known. This arises because the buyer relies on the seller's skill or judgment and the goods are of a kind the seller deals in. It is a condition, not just a warranty.

  1. AAn implied warranty only, breach of which gives a right to damages alone
  2. BAn implied condition that the goods shall be reasonably fit for that purposeCorrect
  3. CNo implied term, because the buyer must examine the goods himself
  4. DAn implied condition that the goods are of the highest available quality

Explanation

Section 16(1) provides that where the buyer makes known the particular purpose and relies 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 for that purpose. It is a condition, not merely a warranty. The Act requires reasonable fitness, not the highest quality.

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