1. S.12: Implied Terms as to Title
S.12[1] is applicable to all contracts for sale of goods. It covers private sales as well as goods which have been purchased in course of business.S.12(1)[2] implies a condition that the seller has a right to sell the goods. This is applicable to situations where the seller may be selling stolen goods.
A buyer who treats the contract as nullified is entitled to refund of full purchase price even if he has enjoyed the use of goods for sometime.
Case Law: Rowland v. Divall (1923)[3].
The claimant was a car dealer. He brought a car from the defendant for £ 334. He made repairs to the car, painted it and sold it to another person for £ 400. After two months, the car was seized by the Police, who said that it was a stolen car. The Police, restored it to the original owner.
The claimant refunded £ 400 to the buyer and then brought a claim against the defendant under the Sale of Goods Act[4].
It was held that the defendant had no right of sale since a thief who sold the car to him did not have a good title. The defendant had to return the amount. Even though he used the car for two months he did not have to pay for it and the claimant who spent for its repair was not to be compensated.
S.12 (2) (a)[5]implies a term that there is no undisclosed encumbrance charge. This arises in the case of goods , which might have been still under hire purchase (hp) agreement or might have some other debt availed against them, but the same might not have been disclosed to the buyer. This is a type of warranty only. So while the buyer cannot end the contract, he can claim damages for any loss.
Case Law: Microbeads v.
2. S.13 Sale
by Description
S 13(1)[7] implies a term that where there is a contract for the sale of
goods on the basis of a description the goods will agree with the description.It may be noted that S.13(1) does not apply where the buyer sees , the actual goods before sale case: Harlington & Leinster v.Christopher
Case Law: Arcos v. Ranaason (1933)AC 470[9].
3. S.14: Implied Term as to Quality
S.14 (2 A)[10] Where the seller sells goods in the course of business, the implied term is that the goods supplied under the contract are of satisfactory quality.S.14 (2 B)[11] In judging the quality of goods
- Fitness for the purposes for which goods are supplied.
- Appearance and finish
- Freedom from minor defects
- Safety and
- Durability are the factors that are taken into consideration.
- Defect in quality which is specifically drawn to the attention of the buyer before finalization of the contract.
- Where the goods are examined by the buyer during which the defect ought to have been reversed.
4. S.15: Sale
by Sample
S.15[14]
applies to all types of sales, whether it is consumer sale or a private sale o
a business to business sale.S.15 (2) [15]provides that contract for sale by sample provides an implied term that
- The bulk will agree with sample in quality
- The goods will be free from any defect making their quality unsatisfactory, provided that such defect will not be apparent when the sample is reasonably examined.
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