Section 16 of The Sale of Goods Act, 1930
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 judgment, and the goods are of a description which it is in the course of the sellers 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 condition as 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 condition 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 condition does not negative a warranty or condition implied by this Act unless inconsistent therewith.
Summary
- Usually, there is no implied promise about the quality or fitness of goods (buyer beware).
- If the buyer tells the seller their specific purpose and relies on the seller's skill, the goods must be fit for that purpose.
- This fitness rule only applies if the goods are the type that the seller normally supplies in their business.
- Goods bought by description from a dealer must be of "merchantable quality" (fit for ordinary use).
- If the buyer examines the goods, the seller is not responsible for defects that the examination should have uncovered.
- Trade usage can add implied rules about quality or fitness to a contract.
Practical examples
FAQ
1. Does the Sale of Goods Act, 1930, protect me if I buy something that doesn't work?
Generally no, but Section 16 of the Sale of Goods Act, 1930, provides protection if you relied on the seller's skill for a specific purpose or if the goods are not of merchantable quality.
2. What does merchantable quality mean in the Sale of Goods Act, 1930?
While not explicitly defined in Section 16 of the Sale of Goods Act, 1930, it generally means the goods are in a state that a reasonable buyer would accept as being fit for their ordinary description.
3. Does Section 16 of the Sale of Goods Act, 1930, apply if I buy a product by its brand name?
No, the proviso to Section 16(1) of the Sale of Goods Act, 1930, states there is no implied condition of fitness for a particular purpose when an article is sold under its patent or trade name.
Test yourself
Q1.Under Section 16 of the Sale of Goods Act, 1930, when is there an implied condition of fitness for a particular purpose?
Q2.What is the effect of a buyer examining the goods under Section 16(2) of the Sale of Goods Act, 1930?
Q3.Under Section 16(1) of the Sale of Goods Act, 1930, does the implied condition of fitness apply to a seller who is not the manufacturer?
Q4.According to Section 16(4) of the Sale of Goods Act, 1930, what happens if an express warranty in a contract contradicts an implied condition?
Q5.Under Section 16(2) of the Sale of Goods Act, 1930, what is the requirement for "merchantable quality" to apply?