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SALE OF GOODS ACT, 1930

Question Bank
Unit:1
1. What are the consequences of “destruction of goods” under the Sale of Goods Act, 1930,
where the goods have been destroyed after the agreement to sell but before the sale is
affected
Answer: Destruction of Goods-Consequences: In accordance with the provisions of the Sale of
Goods Act, 1930 as contained in Section 7, a contract for the sale of specific goods is void if
at the time when the contract was made; the goods without the knowledge of the seller, perished
or become so damaged as no longer to answer to their description in the contract, then the
contract is void ab initio. This section is based on the rule that where both the parties to a
contract are under a mistake as to a matter of fact essential to a contract, the contract is void.
In a similar way Section 8 provides that an agreement to sell specific goods becomes void if
subsequently the goods, without any fault on the part of the seller or buyer, perish or become so
damaged as no longer to answer to their description in agreement before the risk passes to the
buyer. This rule is also based on the ground of impossibility of performance as stated above.
It may, however, be noted that section 7 & 8 apply only to specific goods and not to
unascertained goods. If the agreement is to sell a certain quantity of unascertained goods, the
perishing of even the whole quantity of such goods in the possession of the seller will not relieve
him of his obligation to deliver the goods.

2. In what ways does a "Sale" differ from "Hire-Purchase"?

Answer:
Basis of Comparison Sale Hire Purchase
Time of passing property Property in the goods is transferred The property in goods passes to the
to the buyer immediately at the hirer upon payment of the last
time of contract. installment.
Position of the party The position of the buyer is that of The position of the hirer is that of a
the owner of the goods. bailee till he pays the last
installment.
Termination of contract The buyer cannot terminate the The hirer may, if he so likes,
contract and is bound to pay the terminate the contract by returning
price of the goods. the goods to its owner without any
liability to pay the remaining
installments.
Burden of Risk of The seller takes the risk of any loss The owner takes no such risk, for if
insolvency of the buyer resulting from the insolvency of the hirer fails to pay installment,
the buyer. the owner has right to take back
the goods.
Transfer of title The buyer can pass a good title to a The hirer cannot pass any title
bona fide purchaser from him. even to a bona fide purchaser.
Resale The buyer in sale can resell the The hire purchaser cannot resell
goods unless he has paid all the
installments.

3. State briefly the essential element of a contract of sale under the Sale of Goods Act, 1930.
Examine whether there should be an agreement between the parties in order to constitute
a sale under the said Act?
Answer: The following elements must co-exist so as to constitute a contract of sale of goods under
the Sale of Goods Act, 1930.
 There must be at least two parties
 The subject matter of the contract must necessarily be goods
 A price in money (not in kind) should be paid or promised.

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 A transfer of property in goods from seller to the buyer must take place.
 A contract of sale must be absolute or conditional [section 4(2)].
 All other essential elements of a valid contract must be present in the contract of sale.

4. Explain the term “Delivery and its form” under the Sale of Goods Act, 1930.
Answer: Delivery and its forms: Delivery means voluntary transfer of possession from one person
to another [Section 2(2)]. As a general rule, delivery of goods may be made by doing anything, which
has the effect of putting the goods in the possession of the buyer, or any person authorized to hold
them on his behalf
Forms of delivery: Following are the kinds of delivery for transfer of possession:
(i) Actual delivery: When the goods are physically delivered to the buyer.
(ii) Constructive delivery: When it is effected without any change in the custody or actual
possession of the thing as in the case of delivery by attornment (acknowledgement) e.g.,
where a warehouseman holding the goods of A agrees to hold them on behalf of B, at A’s
request.
(iii) Symbolic delivery: When there is a delivery of a thing in token of a transfer of something
else, i.e., delivery of goods in the course of transit may be made by handing over
documents of title to goods, like bill of lading or railway receipt or delivery orders or the
key of a warehouse containing the goods is handed over to buyer.

5. Explain the difference between Sale and Agreement to sell under the Sale of Goods Act,
1930.
Answer:
Basis of Comparison Sale Agreement to Sell
Transfer of property The property in the goods passes Property in the goods passes to the
to the buyer immediately. buyer on future date or on
fulfilment of some condition.
Nature of contract It is an executed contract. i.e. It is an executory contract. i.e.
contract for which consideration contract for which consideration is
has been paid. to be paid at a future date.
Remedies for breach The seller can sue the buyer for The aggrieved party can sue for
the price of the goods because damages only and not for the
of the passing of the property price, unless the price was payable
therein to the buyer. at a stated date.
Liability of parties A subsequent loss or destruction of Such loss or destruction is the
the goods is the liability of the liability of the seller.
buyer.
Burden of risk Risk of loss is that of buyer since Risk of loss is that of seller.
risk follows ownership.
Nature of rights Creates Jus in rem Creates Jus in personam
Right of resale The seller cannot resell the goods. The seller may sell the goods since
ownership is with the seller.

6. Define Goods . Explain the classification of goods.

Answer: Goods”means every kind of movable property other than actionable claims and money; and
includes stock and shares, growing crops, grass, and things attached to or forming part of the land,
which are agreed to be severed before sale or under the contract of sale. [Section 2(7)]
‘Actionable claims’ are claims, which can be enforced only by an action or suit, e.g., debt. A
debt is not a movable property or goods. Even the Fixed Deposit Receipts (FDR) are considered as
goods under Section 176 of the Indian Contract Act read with Section 2(7) of the Sales of Goods Act.
“Goods” include both tangible goods and intangible goods like goodwill, copyrights, patents,
trademarks etc. Stock and shares, gas, steam, water, electricity and decree of the court are also
considered to be goods.
Classification of Goods
(i) EXISTING GOODS are such goods as are in existence at the time otfhe contract of sale, i.e.,
those owned or possessed or acquired by the seller at the time of contract of sale (Sec 6).
The existing goods may be of following kinds:

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(a) Specific
(b) Ascertained Goods
(c) Unascertained goods
(ii) FUTURE GOODS means goods to be manufactured or produced or acquired by the seller after
making the contract of sale [Section 2 (6)].
A contract for the sale of future goods is always an agreement to sell. It is never actual sale
because a person cannot transfer what is not in existence.
(iii)CONTINGENT GOODS: The acquisition of which by the seller depends upon an uncertain
contingency (uncertain event) are called ‘contingent goods’ [Section 6(2)].
Contingent goods also operate as ‘an agreement to sell’ and not a ‘sale’ so far as the question
of passing of property to the buyer is concerned. In other words, like the future goods, in the
case of contingent goods also, the property does not pass to the buyer at the time of making
the contract.

7. Define Specific , Ascertain & Unascertained Good.

Answer: (i)Specific goods means goods identified and agreed upon at the time a contract of sale is
made [Section 2(14)].
(ii) Ascertained Goods are those goods which are identified in accordance with the agreement
after the contract of sale is made. This term is not defined in the Act but has been judicially
interpreted. In actual practice, the term ‘ascertained goods’ is used in the same sense as
‘specific goods.’ When from a lot or out of large quantity of unascertained goods, the number
or quantity contracted for is identified, such identified goods are called ascertained goods.
(iii) Unascertained goods are the goods which are not specifically identified or ascertained at the
time of making of the contract. They are indicated or defined only by description or
sample.

8. Define Document of title of goods.

Answer: “Document of title to goods” includes bill of lading, dock-warrant, warehouse keeper’s
certificate, wharfingers’ certificate, railway receipt, multimodal transport document, warrant or
order for the delivery of goods and any other document used in the ordinary course of business as
proof of the possession or control of goods or is for authorizing or purporting to authorize, either by
endorsement or by delivery, the possessor of the document to transfer or receive goods thereby
represented. [Section 2(4)]
 A document amounts to a document of title only where it shows an unconditional
undertaking to deliver the goods to the holder of the document.
 However, there is a difference between a ‘document showing title’ and ‘document of title’. A
share
 certificate is a ‘document’ showing title but not a document of title. It merely shows that the
person named in the share certificate is entitled to the share represented by it, but it does
not allow that person to transfer the share mentioned therein by mere endorsement on the
back of the certificate and the delivery of the certificate.

9. A agrees to buy a new TV from a shop keeper for Rs. 30,000 payable partly in cash of Rs.
20,000 and partly in exchange of old TV set. Is it a valid Contract of Sale of Goods? Give
reasons for your answer.
Answer: It is necessary under the Sales of Goods Act, 1930 that the goods should be exchanged for
money. If the goods are exchanged for goods, it will not be called a sale. It will be considered as
barter. However, a contract for transfer of movable property for a definite price payable partly in
goods and partly in cash is held to be a contract of Sale of Goods.
In the given case, the new TV set is agreed to be sold for ` 30,000 and the price is payable partly in
exchange of old TV set and partly in cash of ` 20,000. So, in this case, it is a valid contract of sale
under the Sales of Goods Act, 1930.

10. A agrees to sell to B 100 bags of sugar arriving on a ship from Australia to India within
next two months. Unknown to the parties, the ship has already sunk. Does B have any right
against A under the Sale of Goods Act, 1930?
Answer: In this case, B, the buyer has no right against A the seller. Section 8 of the Sales of Goods
Act, 1930 provides that where there is an agreement to sell specific goods and the goods without any

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fault of either party perish, damaged or lost, the agreement is thereby avoided. This provision is
based on the ground of supervening impossibility of performance which makes a contract void.
So, all the following conditions required to treat it as a void contract are fulfilled in the above case:
(i) There is an agreement to sell between A and B
(ii) It is related to specific goods
(iii) The goods are lost because of the sinking of ship before the property or risk passes to the
buyer.
(iv) The loss of goods is not due to the fault of either party.

11. X contracted to sell his car to Y. They did not discuss the price of the car at all. X later
refused to sell his car to Y on the ground that the agreement was void being uncertain about
price. Can Y demand the car under the Sale of Goods Act, 1930?
Answer: Payment of the price by the buyer is an important ingredient of a contract of sale. If the
parties totally ignore the question of price while making the contract, it would not become an
uncertain and invalid agreement. It will rather be a valid contract and the buyer shall pay a
reasonable price.
In the give case, X and Y have entered into a contract for sale of car but they did not fix the price of
the car. X refused to sell the car to Y on this ground. Y can legally demand the car from X and X can
recover a reasonable price of the car from Y.

12. Classify the following transactions according to the types of goods they are:
(i) A wholesaler of cotton has 100 bales in his godown. He agrees to sell 50 bales and
these bales were selected and set aside.
(ii) A agrees to sell to B one packet of sugar out of the lot of one hundred packets lying in
his shop.
(iii) T agrees to sell to S all the apples which will be produced in his garden this year.
Answer: (i) A wholesaler of cotton has 100 bales in his godown. So, the goods are existing goods. He
agrees to sell 50 bales and these bales were selected and set aside. On selection, the
goods becomes ascertained. In this case, the contract is for the sale of ascertained goods,
as the cotton bales to be sold are identified and agreed after the formation of the
contract.
(ii)If A agrees to sell to B one packet of sugar out of the lot of one hundred packets lying in
his shop, it is a sale of existing but unascertained goods because it is not known which
packet is to be delivered.
(iii)T agrees to sell to S all the apples which will be produced in his garden this year. It is
contract of sale of future goods, amounting to 'an agreement to sell.'

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Unit:2

1. What do you understand by Caveat Emptor under the Sale of Goods Act 1930? What are the
exceptions to this rule?
Answer: Caveat Emptor’ means “Let the buyer beware”, i.e. in sale of goods the seller is under no
duty to reveal unflattering truths about the goods sold. Therefore, when a person buys some goods,
he must examine them thoroughly. If the goods turn out to be defective or do not suit his purpose,
or if he depends upon his skill and judgment and makes a bad selection, he cannot blame anybody
excepting himself.
The rule is enunciated in the opening words of section 16 of the Sale of Goods Act, 1930 which
runs thus: “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”
The rule of caveat emptor does not apply in the following cases:
 Fitness for buyer’s purpose: Where the buyer, expressly or by implication, makes know to
the seller the particular purpose for which he requires the goods and 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, the seller must supply the goods which shall be fit for the buyer’s
purpose. (Section16(1).
 Sale under a patent or trade name: 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 that the goods
shall be reasonably fit for any particular purpose (Section 16(1).
 Merchantable quality: Where goods are bought by description from a seller who deals in
goods of that description (whether he is in the manufacturer or producer or not), there is an
implied condition that the goods shall be of merchantable quality. But if the buyer has
examined the goods, there is no implied condition as regards defects which such
examination ought to have revealed. (Section 16(2).
 Usage of trade: An implied warranty or condition as to qualify or fitness for a particular
purpose may be annexed by the usage of trade. (Section 16(3).
 Consent by fraud: Where the consent of the buyer, in a contract of sale, is obtained by the
seller by fraud or where the seller knowingly conceals a defect which could not be discovered
on a reasonable examination, the doctrine of caveat emptor does not apply.

2. What are the implied conditions in a contract of ‘Sale by sample’ under the Sale of Goods
Act, 1930?
Answer: The following are implied conditions in a contract of sale by sample in accordance with
Section 17 of the Sale of Goods Act, 1930
 that the bulk shall correspond with the sample in quality
 that the buyer shall have a reasonable opportunity of comparing the bulk with the sample.
 that the goods shall be free from any defect, rendering them un merchantable, which would
not be apparent on a reasonable examination of the sample [Section 17(2)].

3. State the implied warranties operatives under the Sale of Goods Act, 1930.
Answer: Implied Warrants:
 Warranty of quiet possession [Section 14(b)]: In a contract of sale, unless there is a
contrary intention, there is an implied warranty that the buyer shall have and enjoy quiet
possession of the goods. If the buyer is in any way distributed in the enjoyment of the
goods in consequence of seller’s defective title to sell, he can claim damages from seller
 Warranty of freedom from encumbrances [Section 14(c)]: The buyer is entitled to a
further warranty that the goods are not subject to any charge or encumbrance in favour of
a third party. If his possession is in any way disturbed by reason of the existence of any
charge or encumbrances on the goods in favour of any third party, he shall have a right to
claim damages for breach of this warranty.
 Warranty as to quality or fitness by usage of trade [Section 16(3)]. An implied
warranty as to quality or fitness for particular purpose may be annexed by usage of trade.

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 Warranty to disclose dangerous nature of goods: Where a person sells goods, knowing
that the goods are inherently dangerous or they are likely to be dangerous to the buyer
and that the buyer is ignorant of the danger, he must warn the buyer of the probable
danger, otherwise he will be liable in damages.

4. Distinguish between a ‘Condition’ and a ‘Warranty’ in a contract of sale. When shall a

‘breach of condition’ be treated as ‘breach of warranty’ under the provisions of the Sale of
Goods Act, 1930? Explain.
Answer: Difference between Condition and Warranty:
(i) A condition is a stipulation essential to the main purpose of the contract whereas a
warranty is a stipulation collateral to the main purpose of the contract.
(ii) Breach of condition gives rise to a right to treat the contract as repudiated whereas in
case of breach of warranty, the aggrieved party can claim damage only.
(iii) Breach of condition may be treated as breach of warranty whereas a breach of warranty
cannot be treated as breach of condition.
According to Section 13 of the Sale of Goods Act, 1930 a breach of condition may be treated as
breach of warranty in following circumstances:
 Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may
waive the condition.
 Where the buyer elects to treat the breach of condition as breach of a warranty.
 Where the contract of sale is non-severable and the buyer has accepted the whole goods or
any part thereof.
 Where the fulfillment of any condition or warranty is excused by law by reason of
impossibility or otherwise.

5. Ram consults Shyam, a motorcar dealer for a car suitable for touring purposes to promote
the sale of his product. Shyam suggests ‘Maruti’ and Ram accordingly buys it from Shyam.
The car turns out to be unfit for touring purposes. What remedy Ram is having now under
the Sale of Goods Act, 1930?
Answer: Condition and Warranty (Section 12): A stipulation in a contract of sale with reference to
goods which are the subject thereof may be a condition or a warranty. [Sub section (1)]
“A condition is a stipulation essential to the main purpose of the contract, the breach of which gives
rise to a right to treat the contract as repudiated”. [Sub section (2)]
“A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives
rise to a claim for damages but not to a right to reject the goods and treat the contract as
repudiated”. [Sub section (3)]
Whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the
construction of the contract. A stipulation may be a condition, though called a warranty in the
contract. [Sub section (4)]
Conclusion: In the instant case, the term that the ‘car should be suitable for touring purposes’ is a
condition of the contract. It is so vital that its non-fulfilment defeats the very purpose for which
Ram purchases the car.
Ram is therefore entitled to reject the car and have refund of the price

6. “There is no implied warranty or condition as to quality or fitness for any particular

purpose of goods supplied under a contract of sale.” Discuss the significance and State
exceptions, if any.
Answer: The statement given in the question is the fundamental principle of law of sale of goods,
sometime expressed by the maxim ‘Caveat Emptor’ meaning thereby ‘Let the buyer be aware’. In
other words, it is no part of the seller’s duty in a contract of sale of goods to give the buyer an article
suitable for a particular purpose, or of particular quality, unless the quality or fitness is made an
express terms of the contract. The person who buys goods must keep his eyes open, his mind active
and should be cautious while buying the goods. If he makes a bad choice, he must suffer the
consequences of lack of skill and judgement in the absence of any misrepresentation or guarantee
by the seller.
There are, however, certain exceptions to the rule which are stated as under:
 Fitness as to quality or use: Where the buyer makes known to the seller the particular

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purpose for which the goods are required, so as to show that he relies on the seller’s skill or
judgment and the goods are of a description which is in the course of seller’s business to
supply, it is the duty of the seller to supply such goods as are reasonably fit for that purpose.
 Goods purchased under patent or brand name: In case where the goods are purchased
under its patent name or brand name, there is no implied condition that the goods shall be
fit for any particular purpose.
 Goods sold by description: Where the goods are sold by description there is an implied
condition that the goods shall correspond with the description. If it is not so then seller is
responsible.
 Goods of Merchantable Quality: Where the goods are bought by description from a seller
who deals in goods of that description there is an implied condition that the goods shall be of
merchantable quality. The rule of Caveat Emptor is not applicable. But where the buyer has
examined the goods this rule shall apply if the defects were such which ought to have not
been revealed by ordinary examination.
 Sale by sample: Where the goods are bought by sample, this rule of Caveat Emptor does not
apply if the bulk does not correspond with the sample.
 Goods by sample as well as description: Where the goods are bought by sample as well as
description, the rule of Caveat Emptor is not applicable in case the goods do not correspond
with both the sample and description or either of the condition.
 Trade Usage: An implied warranty or condition as to quality or fitness for a particular
purpose may be annexed by the usage of trade and if the seller deviates from that, this rule
of Caveat Emptor is not applicable.
 Seller actively conceals a defect or is guilty of fraud: Where the seller sells the goods by
making some misrepresentation or fraud and the buyer relies on it or when the seller actively
conceals some defect in the goods so that the same could not be discovered by the buyer on
a reasonable examination, then the rule of Caveat Emptor will not apply. In such a case, the
buyer has a right to avoid the contract and claim damages.

7. Explain the “condition as to Merchantability” and “condition as to wholesomeness” under

the Sale of Goods Act, 1930.
Answer: Condition as to Merchantability [Section 16(2) of the Sale of Goods Act, 1930]: 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.
The expression “merchantable quality”, though not defined, nevertheless connotes goods of such a
quality and in such a condition a man of ordinary prudence would accept them as goods of that
description. It does not imply any legal right or legal title to sell.
Example: If a person orders motor horns from a manufacturer of horns, and the horns supplied are
scratched and damaged owing to bad packing, he is entitled to reject them as unmerchantable.
Condition as to wholesomeness: In the case of eatables and provisions, in addition to the implied
condition as to merchantability, there is another implied condition that the goods shall be
wholesome.
Example: A supplied F with milk. The milk contained typhoid germs. F’s wife consumed the milk
and was infected and died. Held, there was a breach of condition as to fitness and A was liable to
pay damages.

8. What are the implied conditions in a contract of ‘Sale by sample’ under the Sale of Goods
Act, 1930?
Answer: The following are implied conditions in a contract of sale by sample in accordance with
Section 17 of the Sale of Goods Act, 1930
 that the bulk shall correspond with the sample in quality
 that the buyer shall have a reasonable opportunity of comparing the bulk with the sample.
 that the goods shall be free from any defect, rendering them un-merchantable, which would
not be apparent on a reasonable examination of the sample.

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9. For the purpose of making uniform for the employees, Mr. Yadav bought dark blue coloured
cloth from Vivek, but did not disclose to the seller the purpose of said purchase. When
uniforms were prepared and used by the employees, the cloth was found unfit. However,
there was evidence that the cloth was fit for caps, boots and carriage lining. Advise Mr.
Yadav whether he is entitled to have any remedy under the sale of Goods Act, 1930?
Answer: Fitness of Cloth: As per the provision of Section 16(1) of the Sale of Goods Act, 1930, an
implied condition in a contract of sale that an article is fit for a particular purpose only arises when
the purpose for which the goods are supplied is known to the seller, the buyer relied on the seller’s
skills or judgement and seller deals in the goods in his usual course of business.
In this case, the cloth supplied is capable of being applied to a variety of purposes, the buyer should
have told the seller the specific purpose for which he required the goods. But he did not do so.
Therefore, the implied condition as to the fitness for the purpose does not apply. Hence, the buyer
will not succeed in getting any remedy from the seller under the Sale of Goods Act, 1930

10. State Seven Implied Conditions under Sale of Goods Act, 1930
Answer: (i) Condition as to title [Section 14(a)I]n. every contract of sale, unless there is an
agreement to the contrary, the first implied condition on the part of the seller is that
a. in case of a sale, he has a right to sell the goods, and
b. in the case of an agreement to sell, he will have right to sell the goods at the time when
the property is to pass.
(ii) Sale by description [Section 15]: where there is a contract of sale of goods by description,
there is an implied condition that the goods shall correspond with the description.
” The buyer is not bound to accept and pay for the goods which are not in accordance
with the description of goods.
(iii) Sale by sample [Sec 17]: In contract of sale by sample, there is an implied condition that
a. the bulk shall correspond with the sample in quality;
b. the buyer shall have a reasonable opportunity of comparing the bulk with the sample,
c. the goods shall be free from any defect rendering them un-merchantable, which would not
be apparent on reasonable examination of the sample.

(iv) Sale by sample as well as by description [Section 15]: Where the goods are sold by sample
as well as by description the implied condition is that the bulk of the goods supplied shall
correspond both with the sample and the description. In case the goods correspond with the
sample but do not tally with description or vice versa or both, the buyer can repudiate the
contract.

(v) Condition as to quality or fitness [Section 16(1)]: Ordinarily, there is no implied condition
as to the quality or fitness of the goods sold for any particular purpose.
However, the condition as to the reasonable fitness of goods for a particular purpose may be
implied if the buyer had made known to the seller
a. the purpose of his purchase
b. relied upon the skill and judgment of the seller to select the best goods
c. the seller has ordinarily been dealing in those goods.
This implied condition will not apply if the goods have been sold under a trademark or a
patent name.

(vi) Condition as to Merchantability [Section 16(2)]: Where goods are bought by description
from a seller who deals in goods of that description there is an implied condition that the
goods shall be of merchantable quality.

(vii) Condition as to wholesomeness: In the case of eatables and provisions, in addition to the
implied condition as to merchantability, there is another implied condition that the goods
shall be wholesome.

11. M/s Woodworth & Associates, a firm dealing with the wholesale and retail buying and
selling of various kinds of wooden logs, customized as per the requirement of the customers.
They dealt with Rose wood, Mango wood, Teak wood, Burma wood etc.

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Mr. Das, a customer came to the shop and asked for wooden logs measuring 4 inches broad
and 8 feet long as required by the carpenter. Mr. Das specifically mentioned that he required
the wood which would be best suited for the purpose of making wooden doors and window
frames. The Shop owner agreed and arranged the wooden pieces cut into as per the buyers
requirements.
The carpenter visited Mr. Das's house next day, and he found that the seller has supplied
Mango Tree wood which would most unsuitable for the purpose. The carpenter asked Mr. Das
to return the wooden logs as it would not meet his requirements.
The Shop owner refused to accept return of the wooden logs on the plea that logs were cut to
specific requirements of Mr. Das and hence could not be resold.
i.Explain the duty of the buyer as well as the seller according to the doctrine of “Caveat
ii. Emptor”. Whether Mr. Das would be able to get the money back or the right kind of wood
as required serving his purpose?
Answer: (i)Duty of the buyer according to the doctrine of “Caveat Emptor”: In case of sale of
goods, the doctrine ‘Caveat Emptor’ means ‘let the buyer beware’. When sellers display their goods
in the open market, it is for the buyers to make a proper selection or choice of the goods. If the
goods turn out to be defective he cannot hold the seller liable. The seller is in no way responsible for
the bad selection of the buyer. The seller is not bound to disclose the defects in the goods which he
is selling.
Duty of the seller according to the doctrine of “Caveat Emptor”: The following exceptions to the
Caveat Emptor are the duties of the seller:
i. Fitness as to quality or use Goods purchased under patent or brand name
ii. Goods sold by description
iii. Goods of Merchantable Quality
iv. Sale by sample
v. Goods by sample as well as description
vi. Trade usage
vii. Seller actively conceals a defect or is guilty of fraud
(ii) As Mr. Das has specifically mentioned that he required the wood which would be best suited
for the purpose of making wooden doors and window frames but the seller supplied Mango tree
wood which is most unsuitable for the purpose. Mr. Das is entitled to get the money back or the
right kind of wood as required serving his purpose. It is the duty of the seller to supply such goods
as are reasonably fit for the purpose mentioned by buyer. [Section 16(1) of the Sale of Goods Act,
1930]

12.Mrs. Geeta went to the local rice and wheat wholesale shop and asked for 100 kgs of
Basmati rice. The Shopkeeper quoted the price of the same as ` 125 per kg to which she
agreed. Mrs. Geeta insisted that she would like to see the sample of what will be provided to
her by the shopkeeper before she agreed upon such purchase. The shopkeeper showed her a
bowl of rice as sample. The sample exactly corresponded to the entire lot.
The buyer examined the sample casually without noticing the fact that even though the
sample was that of Basmati Rice but it contained a mix of long and short grains. The cook on
opening the bags complained that the dish if prepared with the rice would not taste the same
as the quality of rice was not as per requirement of the dish. Now Mrs. Geeta wants to file a
suit of fraud against the seller alleging him of selling mix of good and cheap quality rice. Will
she be successful?
Decide the fate of the case and options open to the buyer for grievance redressal as per the
provisions of Sale of Goods Act, 1930?
What would be your answer in case Mrs. Geeta specified her exact requirement as to length of
rice?
Answer: As per the provisions of Sub-Section (2) of Section 17 of the Sale of Goods Act, 1930,
in a contract of sale by sample, there is an implied condition that:
a. the bulk shall correspond with the sample in quality;
b. the buyer shall have a reasonable opportunity of comparing the bulk with the sample.
i. In the instant case, in the light of the provisions of Sub-Clause (b) of Sub-Section (2) of
Section 17 of the Act, Mrs. Geeta will not be successful as she casually examined the
sample of rice (which exactly corresponded to the entire lot) without noticing the fact that
even though the sample was that of Basmati Rice but it contained a mix of long and short
grains.

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ii. In the instant case, the buyer does not have any option available to her for grievance
redressal.
iii. In case Mrs. Geeta specified her exact requirement as to length of rice, then there is an
implied condition that the goods shall correspond with the description. If it is not so, the
seller will be held liable.

13. X consults Y, a motor-car dealer for a car suitable for touring purposes to promote the
sale of his product. Y suggests ‘Santro’ and X accordingly buys it from Y. The car turns out to
be unfit for touring purposes. What remedy X is having now under the Sale of Goods Act,
1930?
Answer: Condition and warranty (Section 12): A stipulation in a contract of sale with reference to
goods which are the subject thereof may be a condition or a warranty. [Sub-section (1)]
“A condition is a stipulation essential to the main purpose of the contract, the breach of which gives
rise to a right to treat the contract as repudiated”. [Sub-section (2)]
In the instant case, the term that the ‘car should be suitable for touring purposes’ is a condition of
the contract. It is so vital that its non-fulfilment defeats very purpose for which X purchases the car.
X is therefore entitled to reject the car and have refund of the price.

14.Mrs. G bought a tweed coat from P. When she used the coat she got rashes on her skin as
her skin was abnormally sensitive. But she did not make this fact known to the seller i.e. P.
Mrs. G filled a case against the seller to recover damages. Can she recover damages under the
Sale of Goods Act, 1930?
Answer: According to Section 16(1) of Sales of Goods Act, 1930, normally in a contract of sale there
is no implied condition or warranty as to quality or fitness for any particular purpose of goods
supplied. The general rule is that of “Caveat Emptor” that is “let the buyer beware”. But where the
buyer expressly or impliedly makes known to the seller the particular purpose for which the goods
are required and also relies on the seller’s skill and judgement and that this is the business of the
seller to sell such goods in the ordinary course of his business, the buyer can make the seller
responsible.
In the given case, Mrs. G purchased the tweed coat without informing the seller i.e. P about the
sensitive nature of her skin. Therefore, she cannot make the seller responsible on the ground that
the tweed coat was not suitable for her skin. Mrs. G cannot treat it as a breach of implied condition
as to fitness and quality and has no right to recover damages from the seller.

15.Certain goods were sold by sample by A to B, who in turn sold the same goods by sample to
C and C by sample sold the goods to D. The goods were not according to the sample.
Therefore, D who found the deviation of the goods from the sample rejected the goods and
gave a notice to C. C sued B and B sued A. Advise B and C under the Sale of Goods Act, 1930.
Answer: In the instant case, D who noticed the deviation of goods from the sample can reject the
goods and treat it as a breach of implied condition as to sample which provides that when the goods
are sold by sample the goods must correspond to the sample in quality and the buyer should be
given reasonable time and opportunity of comparing the bulk with the sample. Whereas C can
recover only damages from B and B can recover damages from A. For C and B it will not be treated
as a breach of implied condition as to sample as they have accepted and sold the goods according to
Section 13(2) of the Sales of Goods Act, 1930.

16. A person purchased bread from a baker’s shop. The piece of bread contained a stone in it
which broke buyer’s tooth while eating. What are the rights available to the buyer against the
seller under the Sale of Goods Act, 1930?
Answer: This is a case related to implied condition as to wholesomeness which provides that the
eatables and provisions must be wholesome that is they must be fit for human consumption. In this
case, the piece of bread contained a stone which broke buyer’s tooth while eating, thereby
considered unfit for consumption. Hence, the buyer can treat it as breach of implied condition as to
wholesomeness and can also claim damages from the seller.

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