Implied Condition and Warranties | Law of Contract

Introduction - 

       Section 14 to Section 17 of the Sale of Goods Act, 1930 (SOGA) deals with the provisions relating to implied Conditions and Warranties.  Section 14 deals with implied undertaking as to title. Section 15 of the said Act deals with Sale by Description. Section 16 of SOGA speaks about Caveat Emptor and Section 17 deals with Sale by Simple.
  

Implied Conditions (Section 14 to 17) - 

  Implied Conditions may be explained -

Section 14 of the Sales of Goods Act, 1930 deals with implied undertaking as to title, etc
 
Section 15 of the said Act, deals with Sale by Description.

Section 16 (1)of the Sales of Goods Act, 1930 - Implied Condition as to Quality or Fitness.

Section 16 (2) of the Sales of Goods Act, 1930 - Implied Condition by Merchantability.

Section 16 (3) of the Sales of Goods Act 1930 - Implied Condition by custom.

Section 17 of the Sales of Goods Act 1930 - Sale by Sample 

 Implied undertaking as to title, etc. (Section 14) - 

        In a contract of sale, unless the circumstances of the contract are such as to show a different intention there is -

      (a) an implied condition on the part of the seller that, in the case of a sale, he has a right to sell the goods and that, in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.

     (b) an implied warranty that the buyer shall have and enjoy quiet possession of the goods.

     (c) an implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party not declared or known to the buyer before or at the time when the contract is made.

Sale by description (Section 15) - 

     According to Section 15 of the said Act,  where there is a contract for the sale of goods by description, there is an implied condition that the goods shall correspond with the description, and, if the sale is by sample as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.


        Implied conditions as to quality or fitness Subject to the provisions of this Act and of any other law for the time being in force, there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale, except as follows -

    (1) Where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required, so as to show that the buyer relies on the seller’s skill or judgement, and the goods are of a description which it is in the course of the seller’s business to supply (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be reasonably fit for such purpose.

       Provided that, in the case of a contract for the sale of a specified article under its patent or other trade name, there is no implied conditions to its fitness for any particular purpose.

    (2) Where goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be of merchantable quality. Provided that, if the buyer has examined the goods, there shall be no implied conditions as regards defects which such examination ought to have revealed.


(3) An implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.

(4) An express warranty or conditions does not negative a warranty or condition implied by this Act unless inconsistent therewith.

See also...Corporate personality: Meaning Definition and Kinds of Corporate Personality

Sale by sample (Section 17) - 

        (1) A contract of sale is a contract for sale by sample where there is a term in the contract, express or implied, to that effect.

        (2) In the case of a contract for sale by sample, there is an implied condition -

                  (a) that the bulk shall correspond with the sample in quality.

                  (b) that the shall have a reasonable opportunity of comparing the bulk with the sample.

                  (c) that the goods shall be free from any defect, rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.

Implied Warranties - 

       Implied warranties in a contract of sale may be explained -

(1) Implied warranty as a quiet possession (Section 14b SOGA)  -

         According to Section 14(b) an implied warranty that the buyer shall have and enjoy quiet possession of the goods.

(2) Implied warranty as to free from encumbrances (Section 14c SOGA) - 

    According to Section 14(c) an implied warranty that the goods shall be free from any charge or encumbrance in favor of any third party not declared or known to the buyer before or at the time when the contract is made.

(3) Implied warranty as to quality or fitness by usage of trade ([Section 16(4)] SOGA) -

     According to Section 16 (4) of the said Act, An express warranty or conditions does not negative a warranty or condition implied by this Act unless inconsistent therewith.

See also...

1) Caveat emptor

2) Formation of Life Insurance Contract

3) Termination of Agency