Implied Conditions under the Sale of Goods Act, 1930
In a contract of sale, certain conditions are not expressly stated but are implied by law to
protect the buyer. These are called Implied Conditions, mentioned under Sections 14 to 17
of the Sale of Goods Act, 1930.
1. Condition as to Title (Section 14(a))
The seller must have the right to sell the goods.
If the title is defective, the buyer can reject the goods and claim compensation.
Example: If A sells stolen goods to B, B can recover the price and sue for damages when
the real owner claims them.
2. Sale by Description (Section 15)
If goods are sold by description, they must match the description.
Applies to both specific and unascertained goods.
Example: A orders a “Sony 55-inch 4K TV”, but gets a 43-inch one. A can reject the
goods.
3. Sale by Sample (Section 17)
In a sale by sample, the bulk must correspond with the sample in quality.
Buyer must have a reasonable opportunity to compare and check for latent defects.
4. Sale by Sample as well as Description
Goods must match both the sample and the description.
If either fails, the buyer can reject the goods.
Example: If a sample cloth is red silk, but delivered cloth is red polyester, the buyer can
reject.
5. Condition as to Quality or Fitness (Section 16(1))
If the buyer informs the seller of the purpose, and relies on the seller’s skill/judgment,
goods must be fit for that purpose.
Example: A asks B for a waterproof jacket for trekking. If it turns out not waterproof, A
can reject it.
6. Condition as to Merchantable Quality (Section 16(2))
When goods are bought by description from a seller who deals in such goods, they must be
of merchantable quality (i.e., usable and saleable).
Example: If A buys a packet of biscuits and finds worms inside, it violates this
condition.
7. Condition in Sale by Trade Name
If the buyer purchases goods under a patent or trade name, no implied condition as to
fitness arises unless he relies on the seller’s advice.
Can Implied Conditions be Excluded?
Yes. They can be excluded by:
Express agreement
Course of dealing
Trade usage
Would you like this in a PDF or with case law examples added (e.g., Grant v. Australian
Knitting Mills)?
Implied Warranties under the Sale of Goods Act, 1930
Just like implied conditions, there are certain warranties implied by law in a contract of
sale. These implied warranties are not written explicitly but are presumed to be part of
the contract unless otherwise agreed.
✅ 1. Warranty of Quiet Possession [Section 14(b)]
1. The buyer shall have peaceful possession of the goods.
2. If the buyer’s possession is disturbed by someone with a better title, the buyer can
claim damages.
Example: If A buys a mobile and is later disturbed by a person who proves ownership, A
can sue the seller.
✅ 2. Warranty of Freedom from Encumbrance [Section 14(c)]
1. Goods must be free from any charge or encumbrance (legal claims) unknown
to the buyer.
2. If such an encumbrance exists, the buyer can claim damages.
Example: If a car is sold but later repossessed by a finance company due to unpaid
dues, the buyer can claim compensation.
✅ 3. Warranty as to Quality or Fitness (When Not a Condition)
1. If the buyer does not rely on seller’s skill, but the goods are not fit for the
purpose, it may be treated as a warranty, not a condition.
✅ 4. Warranty of Merchantable Quality (When Not a Condition)
1. If the buyer has examined the goods, the rule of merchantable quality becomes
a warranty, not a condition.
✅ 5. Warranty by Usage of Trade [Section 16(3)]
1. A warranty may be implied by the usage of trade.
2. This applies only if such usage is regular and well-known in the market.
Example: In cloth trade, there's an implied warranty that fabric will not shrink after first
wash.
✅ 6. Warranty to Disclose Dangerous Nature of Goods
1. If goods sold are inherently dangerous, the seller must warn the buyer.
2. If not warned, and injury occurs, the seller is liable for damages.
Example: Selling a chemical without instruction or warning may lead to liability.
❌ Implied Warranties Can Be Excluded
These warranties can be excluded by:
1. Express agreement
2. Course of dealing
3. Usage of trade
Would you like this explanation as a PDF, or with case law examples like Rowland v.
Divall and Godley v. Perry?