Conditions under Sale of Goods Act, 1930

In the fast-paced economy, trade and commerce are flourishing extensively and people are buying products and services. The Sale of Goods Act 1930, governs the sale of any product and services in our country. The provisions of these acts were previously covered by the Indian Contract Act, 1872 but because of a huge number of transactions of sales, a separate act was necessary. Both these acts are correlated and any contract under the Sale of Goods Act, 1930 has some essential element of the Indian Contract Act, 1872.

In case any customer is buying any product, they must know the terms and conditions regarding these products. These things will benefit the customer after the purchase of the product if the product is faulty. The seller or the manufacturer of the product provides warranty and conditions to the product and the customer can take the benefit of the warranty if he/she has fulfilled the conditions given with the product. These conditions are mainly provided in the case of any electronic gadgets, the seller has mentioned all the conditions regarding the usage of the product. If in case the buyer has violated any conditions of the usages, then the seller is not liable to provide him/her any benefits.

Geeky Takeaways:

• The Sale of Goods Act 1930, governs the sale of any product and services in our country.
• Condition is an essential requirement for the foundation of every contract.
• Either party can take the benefit of the same in case of breach of the terms given at the time of the sale.
• In contract law, warranty and condition are related to certain provisions that comprise a sales agreement.
• Condition protects the rights of both seller and buyer in a sale of goods agreement.

What is Condition?

As per Section 12(2) of the Sale of Goods Act 1930, “a condition is a stipulation essential to the main purpose of the contract, the breach of which gives the aggrieved party a right to repudiate the contract itself”.

In simple words, we can define the condition as an essential requirement for the foundation of every contract. Every party to the contract must perform their part of the condition and if in case there is a breach of condition, then the aggrieved party can treat the contract as a repudiated contract. In case of a purchase of any good, the buyer can refuse to accept the good or treat the contract as repudiated if the seller has not fulfilled the conditions of the sale of the goods. In case when the buyer has paid the price before receiving the goods and once he/she receives the goods finds that the seller has breached the condition of the sale, then the buyer has the option to recover the price of the good and can also claim for damages for the breach of the condition.

Types of Condition

There are mainly two types of conditions according to the laws of our country.

1. Express Condition

The meaning of this condition can be understood as that condition that must be put by the parties present in the agreement of the sale of goods. These conditions are essential for the enforceability of the contract and the conditions are incorporated into the contract on the approval of both parties. These conditions need to be fulfilled otherwise, the other party has the right to seek compensation for the loss availed.

For example, in case A wants to purchase a bike from B, the condition that A has put forward is that he wants the bike before a certain date. In this case, the delivery of the bike before that day is a condition in the sale of goods agreement and, it must be fulfilled by B to make this transaction. If B fails to deliver the bike before the stipulated day, then A can deny to purchase of the bike. Further, A has also the right to seek compensation if A has paid any advance amount to B.

2. Implied Condition

These conditions are assumed by the parties that these are present in the contract even if these are not expressly mentioned in the contract. Section 14-17 of the Sale of Goods Act 1930, deals with implied conditions in our country. If the parties do not agree to any other conditions, then these conditions are implied in every sale of goods contract.

I. Implied Condition as to Title: As understood by the title, Implied Condition as to Title means that the seller must have the title of the goods that he is selling. The seller must also have all the rights of the good that he is selling at the time of entering the contract of sale of goods. In this case, the buyer has also the right to reject those goods whose title is not with the seller, and the buyer is also entitled to recover the amount in case he had paid. These conditions are implied in a sale of goods contract and need not be mentioned in the contract expressly.

In the case Rowland v. Divall, there was a breach of implied condition regarding the title of the goods. Despite having no title to the goods, the defendant sold the car to the claimant, and therefore, the claimant was entitled to recover the purchase price paid (as damages). This was even though several months had passed and the claimant had been using the car for quite some time.

II. Implied Condition as to the Description: This condition is defined in Section 15 of the Sale of Goods Act, 1930. As understood by the title, the Implied Condition as to the Description means that the goods that the seller is selling must comply with the description of those goods. In case the goods and the description do not match, then the buyer has the right to reject those goods whose description does not match and the buyer is also entitled to recover the amount in case he had paid any amount for that good. These conditions are implied in a sale of goods contract and need not to be mentioned in the contract expressly. The goods that the seller is selling must be in merchantable condition that is accepted by a normal person. If the good is not in a condition that is fit for use or fit to consume, then the seller is responsible for providing compensation for the same. In this, the buyer has the right to check the goods before he buys. But even after that, if the good is not fit to consume or use after a certain time then the buyer has the right to receive the compensation.

III. Implied Condition in a Sale by Sample: This condition is defined in Section 17 of the Sale of Goods Act, 1930. As understood by the title, the Implied Condition as to Sale by Sample means that if a seller is selling any product with the advertisement of any sample, then the actual product he is selling also consists of the same quality, size, and color. The seller must also give the buyer a reasonable time to compare the goods. The seller must also sell those goods that are free from any defects. If in case these conditions do not match, then the buyer is entitled to recover the amount in case he had paid any amount for that good or to reject buying that good.

In this case, the buyer has ordered a bulk amount of shoes from the seller depending upon the sample he has shown to him. But later on, when the buyer received the shoes he found that the quality of the sole of that shoe was not similar to the sample. So the court in this case has an order to refund the whole amount to the buyer. These conditions are implied in a sale of goods contract and need not be mentioned in the contract expressly.

Conclusion

In the sale of a good contract, both the buyer and seller have some condition that both parties must fulfill to make the contract legally valid. These conditions are known as warranty and condition depending upon the contract and the nature of the business. In these, they tell each other about the product, quality, payment condition, delivery date, and any other pre-requisite of the sale. In the fast-growing economy, these conditions are very much required to protect the buyer as well as sellers. These are the rights guaranteed to the buyer of the goods by the government of our country. They protect the buyer from any kind of misrepresentation and fraud that the seller can perform. Any transaction between a buyer and seller is a contract of sale of goods, and if in case any party breaches that contract then these conditions will protect them and provide them the remedy.

Frequently Asked Questions (FAQs)

1. Which act governs sales and commerce in our country?

Answer:

The Sale of Goods Act 1930, governs the sale of any product and services in our country.

2. What is the Condition?

Answer:

Condition is as an essential requirement for the foundation of every contract. Every party to the contract must perform their part of the condition and if in case there is a breach of the condition, then the aggrieved party can treat the contract as a repudiated contract.

3. How many types of Conditions are there?

Answer:

There are mainly two types of conditions according to the laws of our country; i.e., Express condition and Implied condition.

4. What is an Express Condition?

Answer:

Express Conditions are those conditions that must be put by the parties or be present in the agreement of the sale of goods.

5. What is an Implied Condition?

Answer:

These conditions are assumed by the parties that these are present in the contract, even if these are not expressly mentioned in the contract.