In: Operations Management
In relation to the Sale of Goods Act 1957, explain the following: (a) Implied condition as to title.
According to the laws of Malaysia Act 382 sales of goods act
1957 section14(a) states that an implied condition on the part of
the seller, that, in the case of a sale, he has a right to sell the
goods, and that, in the case of an agreement to sell, he will have
a right to sell the goods at the time when the property is to
pass.
Section 14-17 of the Sales of Goods Act, 1957 deal with the concept of implied terms. These implied concepts are applicable in every contract of sale of goods. Section 14 deals with the implied condition on part of the seller and states that he has a right to sell goods . When there is an agreement to sell, there is an implied condition that the seller has to ensure the buyer that he will enjoy ownership and possession of goods and can use them. If the seller fails to deliver or pass on the goods at the decided time, the buyer has the right to reject the contract. Another concept is that of implied warranty which states that the buyer is allowed to enjoy quit possession and ownership of goods. If the seller fails to comply with the condition, the buyer can claim damages. Moreover, there is a concept that the goods shall be free from any charge in respect of any third party that is not declared or made known to buyer before or at the time the contract is made.
Section 15 of the Act deals with sale of goods by description. If the contract is made for sale of goods by description, there is an implied condition which refers to the fact that the goods shall correspond to the description. If the sale is made by the sample as well as the description, it is not sufficient for the bulk to correspond to the sample if the goods are not as per the description.
Section 16 of the Act states that there is no implied condition or any implied warranty for the quality or the fitness for any particular purpose of goods. This condition is important when the buyer requests the goods to be reasonable for a purpose or the goods be of merchantable quality.
Section 17 of the Act is about the goods being dealt with sample. The bulk of goods must correspond to the sample of the goods shown or sent. If the seller fails to do so, the buyer can reject the contract under implied condition.