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Express and Implied Conditions and Warranties

Express and Implied Conditions and Warranties

Conditions & warranties may be either express or implied. When they are inserted in the contract they are expressed and they are implied when the law presumes their existence in the contract , although they are not been put in express words. Implied condition and warranties may, however, be negatived by express agreement, or by course of dealing between the parties or by the useage of trade. This provision is merely an application of the general maxim of law “what is expressly done puts an end to what is tacit or implied’ and ‘custom and agreement over-rule implied conditions and warranties’.

Implied Conditions

Unless otherwise agreed, the law incooperates following conditions in to a contract for sale of goods.

1. Condition as to title: Sec.-14(a) In every contract of sale the first implied condition on the part of the seller is that, in case of sales he has a right to sell the goods and that, in the case of agreement to sale, he will have a right to sell to goods at the time when the property is to pass. Usually the seller has right to sel the goods if either he is the owner or he is owner’s agent. This implies that if seller’s title is defective the buyer is entitled to reject the goods and to recover his price.


Example

R. purchased a motorcar from D used the same for several months. D had no title to the car and, therefore, R was compelled to return the car to the true owner. R sued D to recover back the price which he had already paid. He was held entitled to recover the whole of the price paid by him despite the fact that he had used the car for some months ( Rowland vs Divall).

It may be noted that the implied condition as to title makes it obligatory upon the seller that he must not only be the owner but also must be able to uphold the validity of the contract. Thus if the goods sold bear labels infringing the trade mark of another, the seller is guilty of breach of this condition although he had full ownership of the goods.

2. Condition in a 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 goods must correspond with description whether it is a sale of specific goods or of unascertained goods. The description may be in term of the qualities or characteristics of the goods. E.g. long staple cotton, kalyan wheat, Basmati Rice, Sugar S.30 or may mention trademark, brand name, type of packing etc.