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Difficulty: MediumSale of Goods Act: Provisions, Terms, Conditions, and Warranties

A commercial rice miller ordered a processing machine described in the contract of sale as having a stainless steel milling chamber. Upon delivery, the buyer discovered that the chamber was constructed from painted mild steel, which rusts when exposed to grain moisture. Under the Sale of Goods Act, what primary legal remedy is available to the buyer?

  1. Reject the machine and treat the contract as repudiated due to a breach of an implied condition.Answer
  2. B
    Keep the machine and claim monetary damages only, as description forms an implied warranty.
  3. C
    Forfeit all legal remedies because the rule of caveat emptor protects the seller in commercial transactions.
  4. D
    Pay the full contract price and seek replacement from the manufacturer directly under criminal law.

Answer

The buyer has the right to reject the machine and repudiate the contract because failure to correspond with description constitutes a breach of an implied condition.
Under the Sale of Goods Act, in a contract for the sale of goods by description, there is an implied condition that the goods delivered must correspond with that description. Because a condition is a essential term going to the root of the contract, its breach entitles the buyer to reject the non-conforming goods and repudiate the contract.

Step-by-Step Solution

1
Identify the nature of the contractual term in question
The requirement for a stainless steel milling chamber was explicitly described in the contract, making it a sale by description under the Sale of Goods Act.
Where goods are sold by description, there is an implied condition that the goods must match that description.
2
Determine whether the term is a condition or a warranty
Failure to supply goods corresponding to description goes to the root of the contract, making it a breach of an implied condition.
Conditions are fundamental terms of a contract, unlike warranties which are collateral terms.
3
Establish the legal remedy available for breach of condition
The buyer can reject the goods and repudiate the contract.
Breach of a condition gives the injured party the right to cancel the contract and refuse delivery, whereas breach of a warranty only gives a right to claim damages.

Key Concept

Implied condition as to description under the Sale of Goods Act
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Topics

Sale of Goods Act: Provisions, Terms, Conditions, and Warranties

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