(i) Ms. S visits an electronic store and asks for a laptop suitable for high-end graphic design work. The salesman recommends a specific model,…
CA Foundation · Business Laws · MTP · September 2026
(i) Ms. S visits an electronic store and asks for a laptop suitable for high-end graphic design work. The salesman recommends a specific model, assuring her that it will meet her needs. Relying on this advice, Ms. S purchases the laptop. However, after using it, she realises that the laptop lacks the necessary processing power and graphics capability for her work. Can Ms. S take legal action against the seller under the Sale of Goods Act, 1930? Justify your answer. (ii) Certain goods were sold by sample by J to K, who in turn sold the same goods by sample to L and L by sample sold the same goods to M. M found that the goods were not according to the sample and rejected the goods and gave a notice to L. L sued K and K sued J. Can M reject the goods? Also advise K and L as per the provisions of the Sale of Goods Act, 1930.
Suggested Answer and Working Notes:
Provisions of Law: (i) Fitness as to Quality or Use [Section 16(1) of the Sale of Goods Act, 1930]: According to Section 16(1) of the Sale of Goods Act, 1930 there is implied condition of the part of the seller that the goods supplied shall be reasonably fit for the purpose for which the buyer wants them, provided the following conditions are fulfilled: The buyer should have made known to the seller the particular purpose for which goods are required. The buyer should rely on the skill and judgement of the seller. The goods must be of a description dealt in by the seller, whether he be a manufacturer or not. In some cases, the purpose may be ascertained from the conduct of the parties or from the nature of the goods sold. Where the goods can be used only for one purpose, the buyer need not tell the seller the purpose for which he requires the goods. (ii) 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. Analysis: (i) In the instant case, Ms. S clearly informed the Seller that she needed a laptop for high end graphic design work. The Seller recommended a model, creating an implied condition that it would be suitable for that purpose. The laptop failed to meet the required performance standards, breaching the implied condition of fitness. (ii) In this case, M received the goods by sample from L but since the goods were not according to the sample, M can reject the goods and can sue L. With regard to K and L, L can recover damages from K and K can recover damages from J. But, for both K and L, 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 Sale of Goods Act, 1930. Conclusion: (i) In the instant case, Ms. S can take legal action against the seller. The seller breached the implied condition as to fitness for purpose, since the laptop recommended was not suitable for high-end graphic design work. (ii) M can reject the goods and sue L because the goods did not correspond to the sample. L can recover damages from K, and K can recover damages from J. However, K and L cannot claim a breach of implied condition as to sample because they accepted and resold the goods.
Topics: The Sale of Goods Act, 1930
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