Commercial Law: Conditions and Guarantees

The Conditions and Guarantees in a contract for the sale of goods have terms regarding quality, price, payment method. Not all terms have the same importance. Some of the terms are major and are called conditions, while some are minor and are called warranties. Breach of conditions may terminate a contract but breach of warranties may not be so vital.

Express and implied conditions

The conditions are express when they are voluntarily inserted in the contract by the parties and implicit when the law automatically presumes their existence in the contract. Unless otherwise agreed, the law cooperates in the contract of sale of goods on the following implied conditions;

The condition in a sale by description. The buyer specifically describes what he wants.

Sample where the buyer gives a sample to the supplier so that they buy exactly the same

· Sample and description. Use both the sample and the description.

· In terms of suitability or quality. The rule that the buyer must be aware that, unless he explains to the seller the purpose for which the goods are required, in which case the buyer will be relying on the judgment of the seller. It will be assumed that the seller is familiar with the merchandise.

The condition of merchantability. The goods must be in conditions of sale according to the standard of the market. Condition is implied only when sale is by description. The merchantable quality must be that good that must be reasonable under the description by which they are known in the market.

The right to sell.

Implied warranties

Warranties, as seen above, are not as vital when they are breached. The following are the rules that govern the guarantees;

· Guarantee of quiet possession is where once you have acquired a good you have the right to enjoy it without interference.

· Guarantee of freedom from encumbrances is when whatever good you have brought, no one else has seized those goods.

· Disclosure guarantee of the dangerous nature of the goods to the ignorant buyer, ie pesticides. The seller must inform you of the dangers of such goods.

The caveat emptor doctrine means buyer beware. It implies that it is the buyer’s duty to exercise care when purchasing goods for his requirement and that, in the absence of investigation by the buyer, the seller is not required to disclose any defects in the goods of which he may become aware.

Conclusion on Conditions and Guarantees

As seen above, conditions and guarantees are important in business and one must be able to know the rules that govern them and their conditions.

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