Sale of Goods Act Section 16 — Implied conditions as to quality or fitness
CHAPTER II FORMATION OF THE CONTRACT — Conditions and waranties
Commercial / Corporate
Summary
Subject to the rest of this Act and any other law currently in force, a contract of sale does not automatically come with any implied promise about the quality of the goods or their fitness for a particular purpose, except in the situations listed below.
Sub-section (1): If the buyer, either directly or indirectly, tells the seller the specific purpose for which the goods are needed, and it is clear that the buyer is relying on the seller's skill or judgment, and the goods are of a type that the seller normally supplies in their business (whether the seller is the manufacturer or not), then there is an implied condition that the goods will be reasonably fit for that purpose. However, if the contract is for the sale of a specific item under its patent or other trade name, there is no implied condition that it will be fit for any particular purpose.
Sub-section (2): If goods are bought by description from a seller who deals in goods of that description (whether the seller is the manufacturer or not), there is an implied condition that the goods will be of merchantable quality. However, if the buyer has examined the goods, there is no implied condition regarding defects that such an examination should have revealed.
Sub-section (3): An implied promise or condition about quality or fitness for a particular purpose may be added by the usage of trade.
Sub-section (4): An express promise or condition in the contract does not cancel out a promise or condition implied by this Act, unless the express term is inconsistent with the implied one.
Official Text
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 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 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.