University of Management and

Technology
School of Commerce and Accountancy

FALL – 20 SEMESTER
Course Title: Introduction to business Law

Assignment No.03
Implied ‘’Conditions’’ and Implied ‘’Warranties’’

Course Instructor: Mr./Ms.Farooq Awan

Section: QCB B. Com.(H/AF) Date: 17 DEC 2020

Time Allowed: 5 days Maximum Marks: 10

TO BE FILLED IN BY THE STUDENT

Student Name: ALI WAQAR Student ID: F2019285058

Implied Conditions
In a contract of sale there are few terms ,the violation of which by seller gives a right to
buyer to reject goods and cancel the contract called ‘’Conditions’’. In another words
Implied Conditions are those, which are implied by the law in the absence of any
agreement to the contrary.

Terms of Implied Conditions:

Following are the implied conditions which are contained in the Sales of Goods Act:
1. Implied condition as to title.
2. Implied condition in a sale by description.
3. Implied condition in sale by sample.
4. Implied condition in a sale by sample as well as by description.
5. Implied condition as to fitness or quality.
6. Implied condition as to merchantability.
7. Implied condition as to wholesomeness.
 1. Implied condition as to title
It means, a seller must have a right to sell however he need not be necessarily owner but
he must have authority to sell.

2. Implied condition in a sale by description

It is the implied condition on seller to supply the goods as per description & if goods are
not as per it then buyer can reject the goods.

3. Implied condition in sale by sample

Where a sample of the ordered product is provided to the buyer, and the parties treat the
sample as of a standard quality for the sale, there is a condition that the goods will
conform to the sample. Such sale is termed as a ‘sale by sample’.

4. Implied condition in a sale by sample as well as by description.

When the sale is by sample as well as by description, it is not sufficient that the bulk of
the goods correspond with the sample only and not with the description. Thus, the bulk of
goods should correspond with both, the sample as well as the description.

5. Implied condition as to fitness or quality

A buyer has to be himself careful about the quality & fitness of the product.. It is
important that the specific purpose for which the goods can or are to be used should be
made known to the seller.
6. Implied Condition as to merchantability
The seller in under an implied condition that the goods sold by him must be able to
satisfy ordinary purpose of buying.

7. Implied condition as to wholesomeness

In the case of eatable and food stuff, there is an implied condition that the goods shall be
wholesomeness, i.e., free from any defect which renders them unfit for human
consumption.

Implied Warranties
Whenever a product is sold, it is assumed that there are certain Warranties that are given
by the seller. It is a warranty which the law implies into the contract of sale. It can be
stated that it is the stipulation, which has not been included in the contract of sale in
express words. There are some terms, the violation of which by seller gives a right to
buyer to claim damages.

Terms of Implied Warranties:

1. Warranty as to quiet possession.
2. Warranty as to the non-existence of encumbrances.

1. Warranty as to quiet possession.

There is an implied warranty that the buyer shall have and enjoy, quiet possession of the
goods. The breach of this warranty gives the buyer a right to claim damages from the
seller.
.
2. Warranty as to the non-existence of encumbrances
There is an implied warranty that the goods are free from any charge or encumbrance in
favor of any third person if the buyer is not aware of such charge or encumbrance. The
breach of this warranty gives the buyer a right to claim damages from the seller.