Adarsh visited an authorized car showroom and purchased a car of his choice without conducting a detailed inspection. After making the payment and taking delivery of the car, he discovered a defect in the engine that could not have been detected even with a reasonable inspection. With reference to the provisions of the Sale of Goods Act, 1930, advise, whether Adarsh can invoke the implied condition of merchantability and repudiate the contract due to the defect in the car.

Question

Accepted Answer

Condition as to Merchantability [Section 16(2) of the Sale of Goods Act, 1930]: 
Where goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be of merchantable quality. 
There are two requirements for this condition to apply: 
(a) Goods should be bought by description. 
(b) The seller should be a dealer in goods of that description. 
Provided that, if the buyer has examined the goods, there shall be no implied condition as regards defects which such examination ought to have revealed. 
The expression “merchantable quality”, though not defined, nevertheless connotes goods of such a quality and in such a condition a man of ordinary prudence would accept them as goods of that description. It does not imply any legal right or legal title to sell. 
In the instant case, the defect in the engine could not have been detected even with a reasonable inspection. 
Therefore, Adarsh can invoke the implied condition of merchantability and is entitled to repudiate the contract due to the defect in the car.

Question Scenario

Suggested Answer

1. Provisions of the Act / Applicable Law

2. Analysis & Application of Facts

3. Conclusion & Verdict

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