In a contract of sale of goods, conditions and warranties may be express or implied.
1. Express Conditions and Warranties:
These are expressly provided in the contract. For example, a buyer desires to buy a SONY TV Model No. 2062. Here, model no. is an express condition. In an advertisement for Khaitan fans, guarantee for 5 years is an express warranty.
2. Implied Conditions and Warranties:
These are implied by law in every contract of sale of goods unless a contrary intention appears from the terms of the contract. The various implied conditions and warranties have been shown below.
Implied Conditions:
A) Conditions as to Title:
There is an implied condition on the part of the seller that (i) in the case of a sale, he has a right to sell the goods, and (ii) 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) Sale by Description:
Where there is a contract of sale of goods by description, there is an implied condition that the goods shall correspond with description. The main idea is that the goods supplied must be same as were described by the seller. Sale of goods by description include many situations as under:
C) Sale by Sample:
A contract of sale is contract for sale by sample when there is a term in the contract, express or implied, to that effect. Such sale by sample is subject to the following three conditions.
a) The goods must correspond with the sample in quality.
b) The buyer must have a reasonable opportunity of comparing the bulk with the sample.
c) The goods must be free from any defect which renders them unmerchantable and which would not be apparent on reasonable examination of the sample. Such defects are called latent defects and are discovered when the goods are put to use. It may be noted that the seller cannot be held liable for apparent or visible defects which could be easily discovered by an ordinary prudent person.
D) Sale by sample as well as by Description:
If the sale is by sample as well as by description, the goods must correspond with the sample as well as the description.
E) Condition as to Quality or Fitness:
There is no implied condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale. In other words, the buyer must satisfy himself about the quality as well as the suitability of the goods. This is expressed by the maxim caveat emptor (let the buyer beware).
F) Condition as a Merchantable Quality:
Where the 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. The expression ‘merchantable quality’ means that the quality and condition of the goods must be such that a man of ordinary prudence would accept them as the goods of that description. Goods must be free any latent or hidden defects.
G) Conditions as to Wholesomeness:
In case of eatables or provisions or foodstuffs, there is an implied condition as to wholesomeness. Condition as to wholesomeness means that the goods shall be fit for human consumption.
Implied Warranties:
A) Warranty as to Quiet Possession:
There is an implied warranty that the buyer shall have and enjoy quiet possession of the goods. The reach of this warranty gives buyer a right to claim damages from the seller.
B)Warranty of Freedom from Encumbrances:
There is an implied warranty that the goods are free from any charge or encumbrance in favour of any third person if the buyer is not aware of such charge or encumbrance. The breach of this warranty gives buyer a right to claim damages from the seller.
C) Warranty as to Quality or Fitness for Particular Purpose which may be Annexed by the Usage of Trade
D) Warranty to Disclose Dangerous Nature of Goods:
In case of goods of dangerous nature the seller must disclose or warn the buyer of the probably danger. If the seller fails to do so, the buyer may make him liable for breach of implied warranty.