Question 4

Implied conditions in a sale of goods; packing cloth unfit for fruit

18.75 marks

Time to write
About 38 minutes

From an older CBCS paper

Question

Question 4 · 18.75 marks

Q.4. “Certain implied conditions exist in a contract for the sale of goods; if these are not fulfilled, the buyer has the right to reject the contract, or the damages are payable by the seller.” Comment.

For packing fruits, Karan purchased packing cloth from Tarun. Because it had an unusual smell, the cloth was not fit for packing eatables, though it was good for packing other things. What rights will Karan have when; a) Karan tells the seller his specific purpose, b) He asked the seller for good packing cloth without disclosing that he wants it to pack Fruits. Discuss the rights Karan has, and in that light discuss the implied conditions present in the contract of sale

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

38 minfor 18.8 marks

Read from the question

  • CommentA statement to judge: take a stand on it in your first line, and come back to it at the end.

What the paper leaves open

The paper prints no mark per question (any four of six, equal marks, 75 in all); each question is reckoned here at 18.75 marks.

Write it in this order

  1. Read; underline the asks; jot your points 2 min
  2. 1 Conditions and the implied conditions 8 marks 15 min
  3. 2 Karan: purpose disclosed 5 marks 9 min
  4. 3 Karan: purpose not disclosed 5.8 marks 10 min
  5. Check: every ask answered, key terms underlined 2 min

Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks.

Try it first. About 38 minutes for 18.75 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Implied conditions. The statement is correct. A condition is a term so central to what the contract is for that its breach lets the buyer repudiate the contract (reject the goods) or claim damages, or both. The law implies the following conditions unless the circumstances show a different intention:

Picture itImplied conditions in a sale of goods; packing cloth unfit for fruit

1The contract itself names the sum: it goes down on paper beside the money bag.

Liquidated damagesLiquidated damages are a sum the parties themselves name in the contract as payable on breach

2The flour never came, the stall stood closed—the usual, natural loss of a broken promise.

Ordinary (general) damagesFor loss arising naturally in the usual course of things from the breach.

3The judge allows the wedding orders too—but only because they were told of them at signing.

Special damagesFor loss arising from special circumstances communicated to the other party at the time of the contract

4A breach proved, no loss shown: the court presses a single token coin into his palm.

Nominal damagesA token sum where a breach is proved but no real loss is suffered.

  1. Title (s. 14(a)): the seller has a right to sell the goods.
  2. Description (s. 15): goods sold by description must correspond with the description.
  3. Sample (s. 17): the bulk must correspond with the sample in quality; the buyer must have a reasonable opportunity to compare the two; and the goods must be free from any defect making them unmerchantable that a reasonable examination of the sample would not show.
  4. Sample and description: the goods must correspond with both.
  5. Fitness for purpose (s. 16(1)): where the buyer makes known the purpose for which he needs the goods and relies on the seller's skill or judgment, and the seller deals in goods of that kind, the goods must be reasonably fit for that purpose (not where they are bought under a patent or trade name).
  6. Merchantability (s. 16(2)): if the buyer buys by description from a seller who trades in that kind of goods, they must be of merchantable quality; but where the buyer has examined them, there is no condition as to defects that examination ought to have revealed.
  7. Wholesomeness: eatables and provisions must also be wholesome, fit to eat.

When a breach of condition counts only as a breach of warranty (s. 13): the buyer cannot then reject, and may only claim damages, where he waives the condition, where he elects to treat the breach as a breach of warranty, or where the contract is not severable and he has accepted the goods or part of them.

Karan's case. Apart from these conditions the rule is caveat emptor, let the buyer beware: the condition of fitness (item 5) arises only where the buyer makes his purpose known and relies on the seller's skill or judgment.

    1. Purpose disclosed. Karan told Tarun that the cloth was for packing fruit. The condition of fitness for that purpose (s. 16(1)) arises, and the cloth, with its unusual smell, is unfit to pack eatables. Karan may reject the cloth and recover the price, or claim damages, unless he has accepted it in circumstances that make s. 13 apply.
    1. Purpose not disclosed. Karan asked only for "good packing cloth". No condition of fitness for packing fruit arises: caveat emptor applies. The cloth is fit for packing other things, so it is of merchantable quality as packing cloth, and Karan has no remedy.

Conclusion. Whether Karan can reject turns on whether he disclosed his purpose: the condition of fitness protects the buyer who tells the seller what he needs and relies on him.

Where the 18.75 marks sit

#ComponentMarks
1Conditions and the implied conditions8
2Karan: purpose disclosed5
3Karan: purpose not disclosed5.75
Total18.75
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