Corporate And Regulatory

Limitation Act, 1908 (Pt. 1 of 2)

Status: In force


An Act to consolidate and amend the law for the limitation of suits, and for other purposes.

Preamble. Whereas it is expedient to consolidate and amend the law relating to the limitation of suits, appeals and certain applications to Courts; and whereas it is also expedient to provide rule' for acquiring by possession thee ownership of easements and other property; It is hereby enacted as follows:

1.            Short title, extent and commencement. (1) This Act may be called the Limitation Act, 1908.

(2)          It extends to the whole of Pakistan.

(3)          This section and Section 31 shall come into force at once. The rest of this Act shall come into force on the first day of January, 1909.

2.            Definitions. In this Act, unless there is anything repugnant in the subject or context, -

(1)          'applicant' includes any person from or through whom an applicant derives his right to apply;

(2)          'bill of exchange' has the same meaning as in Section 5 of the Negotiable Instruments Act, 1881 (XXXVI of 1881) and includes a hundi and a cheque];

(3)          'bond' includes any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;

(4)          'defendant' includes any person from or through whom a defendant derives his liability to be sued;

(5)          'easement' includes a right not arising from contract, by which one person is entitled to remove and appropriate for his own profit any part of the soil belonging to another or nothing growing or attached to or subsisting, upon, the land of another;

(6)          'foreign country' means any country other than Pakistan .....];

(7)          'good faith' nothing shall be deemed to be done in good faith which is not done with due care and attention;

(8)          'plaintiff' includes any person from or through whom a plaintiff derives his right to sue;

(9)          'promissory note' has the same meaning as in the Negotiable Instruments Act, 1881 (XXVI of 1881);

(10)        'suit does not” include an appeal or an application; and

(11)        'trustee' does not include a benamidar, a mortgagee remaining in possession after the mortgage has been satisfied, or a wrong-doer in possession without title.

PART II

Limitation of Suits, Appeals and Applications

3.            Dismissal of suit, etc., instituted, etc., after period of limitation. Subject to the provisions contained in Sections 4 to 25 (inclusive), every suit instituted, appeal preferred and application made after the period of limitation prescribed therefor by the First Schedule shall be dismissed, although limitation has not been set up as a defence.

Explanation: A suit is instituted, in ordinary cases, when the plaint is presented to the proper officer; in the case of a pauper, when his application for leave to sue as a pauper is made; and, in the case of a claim against a company which is being wound-up by the Court, when the claimant first sends in his claim to the official liquidator.

4.            Where Court is closed when period expires. Where the period of limitation prescribed for any suit, appeal or application expires on a day when the Court is closed, the suit, appeal or application may be instituted, preferred, or made on the day that the Court re-opens.

5.            Extension of period in certain cases. Any appeal or application for a revision or a review of judgment or for leave to appeal or any other application to which this section may be made applicable by or under any enactment for the time being in force may be admitted after the period of limitation prescribed therefor, when the appellant or applicant satisfies the Court that he had sufficient cause for not preferring the appeal or making the application within such period.

Explanation. The fact that the appellant or applicant was misled by any order, practice or judgment of the High Court in ascertaining or computing the prescribed period of limitation may be sufficient cause within the meaning of this section.

6.            Legal disability. (1) Where a person entitled to institute a suit or proceeding or make an application for the execution of a decree is at the time from which the period of limitation is to be reckoned, a minor, or insane or an idiot, he may institute the suit or proceeding or make the application within the same period after the disability has ceased, as would otherwise have been allowed from the time prescribed there for in the third column of the First Schedule or in Section 48 of the Code of Civil Procedure, 1908 (Act V of 1908).

(2)          Where such person is at the time from which the period of limitation is to be reckoned, affected by two such disabilities, or where, before his disability has ceased, he is affected by another disability, he may institute the suit or make the application within the same period, after both disabilities have ceased, as would otherwise have been allowed from the time so prescribed.

(3)          Where the disability continues up to the death of such person, his legal representative may institute the suit or make the application within the same period after the death as would otherwise have been allowed from the time so prescribed.

(4)          Where such representative is at the date of the death affected by any such disability, the rules, contained in sub-section (1) and (2) shall apply.

Illustrations

(a)          The right to sue for the hire of a boat accrues to A during his minority. He attains majority four years after such accruer. He may institute his suit at any time within three years from the date of his attaining majority.

(b)          A right to sue accrues to Z during his minority. After the accruer, but while Z is still a minor, he becomes in insane. Time runs against Z from the date when his insanity and minority cease.

(c)           A right to sue accrues to X during his minority. X dies before attaining majority, and is succeeded by Y, his minor son. Time runs against Y from the date of his attaining majority.

7.            Disability of one of several plaintiffs or applicants. Where one of several persons jointly entitled to institute a suit ^or proceeding] or make an application for the execution of a decree is under any such disability, and a discharge can be given without the concurrence of such person, time will run against them all: but, where no such discharge can be given, time will not run as against any of them until one of them becomes capable of giving such discharge without the concurrence of the others or until the disability has ceased.

(a)          A incurs debt to a firm of which B, C, and D are partners, B is insane and C is minor. D can give a discharge of the debt without the concurrence of B and C. Time runs against B, C and /).

(b)          A incurs a debt to a firm of which E, F and G are partners, £ and F are insane, and G is minor. Time will not run against any of them until either E OR F becomes sane, or G attains majority.

8.            Special exceptions. Nothing in Section 6 or in Section 7 applies to suits to enforce rights of pre-emption, or shall be deemed to extend, for more than three years from the cessation of the disability or the death of the person affected thereby, the period within which any suit must be instituted or application made.

Illustrations

(a)          A, to whom a right to sue for legacy has accrued during his minority, attains majority eleven years after such accruer. A has under the ordinary law, only one year remaining with which to sue. But under Section 6 and this section an extension of two years will be allowed to him, making in all a period of three years from the date of his attaining majority, within which he may bring his suit.

(b)          A right to sue for an hereditary office accrues to A who at the time is insane. Six years after the accruer A recovers his reason. A has six years, under the ordinary law, from the date when his insanity ceased within which to institute a suit. No extension of time will be given him under section 6 read with this section.

(c)           A right to sue as landlord to recover possession from a tenant accrues to A, who is an idiot. A dies three years after the accrue, his idiocy continuing up to the date of his death. A's representative-in-interest has, under the ordinary law mine years from the date of A's death within which to bring a suit. Section 6 read with this section does not extend that time, except where the representative is himself under disability when the representation devolves upon him.

9.            Continuous running of time. Where once time has begun to run, no subsequent disability or inability to sue stops it:

Provided that where Letters of Administration to the estate of a creditor, have been granted to his debtor, the running of the time prescribed for a suit to recover the debt shall be suspended while the administration continues.

10.          Suits against express trustees and their representatives. Notwithstanding anything hereinbefore contained, no suit against a person in whom property has become vested in trust for any specific purpose, or against his legal representatives or assigns (not being assigns for valuable consideration), for the purpose of following in his or their hands such property or the proceeds thereof, or for an account of such property or proceeds, shall be barred by any length of time. For the purposes of this section any property comprised in a Hindu, Muslim or Buddhist religious or charitable endowment shall be deemed to be property vested in trust for a specific purpose, and the manager of any such property shall be deemed to be the trustee thereof.]

11.          Suit on foreign contracts. (1) Suits instituted in Pakistan on contracts entered; into in a foreign country are subject to the rules of limitation contained in this Act.

(2)          No foreign rule of limitation shall be a defence to a suit instituted in Pakistan on a contract entered into in a foreign country, unless the rule has extinguished the contract and the parties were domiciled in such country during the period prescribed by such rule.

PART III

Computation of Period of Limitation

12.          Exclusion of time in legal proceedings. (1) In computing the period of limitation prescribed for any suit, appeal or application, the day from which such period is to be reckoned shall be executed.

(2)          In computing the period of limitation prescribed for an appeal, an application for leave to appeal and an application for a review of judgment, the day on which the judgment complained of was pronounced, and the time requisite for obtaining a copy of the decree, sentence or order appealed from or sought to be reviewed, shall be excluded.

(3)          Where a decree is appealed from or sought to be reviewed, the time requisite for obtaining a copy of the judgment on which it is founded shall also be excluded.

(4)          In computing the period to limitation prescribed for an application to set aside an award, the time requisite for obtaining a copy of the award shall be excluded.

13.          Exclusion of time of defendant's absence from Pakistan and certain other territories. In computing the period of limitation prescribed for any suit, the time during which the defendant has been absent from Pakistan and from the territories beyond Pakistan under the Administration of the Federal Government shall be excluded.

14.          Exclusion of time of proceeding bona fide in Court without jurisdiction. (1) In computing the period of limitation prescribed for any suit, the time during which the plaintiff has been prosecuting with due diligence another civil proceedings, whether in a Court of the first instance or in a Court of appeal, against the defendant, shall be excluded, where the proceeding is founded upon the same cause of action and is prosecuted in good faith in a Court which from defect of jurisdiction, or other cause of a like nature, is unable to entertain it.

(2)          In computing the period of limitation prescribed for any application, the time during which the applicant has been prosecuting with due diligence another civil proceeding whether in a Court of first instance or in a Court of appeal against the same party for the same relief shall be excluded, where such proceeding is prosecuted in good faith in a Court which, from defect of jurisdiction, or other cause of a like nature, is unable to entertain it.

Explanation I. In excluding the time during which a former suit or application was pending, the day on which that suit or application was instituted or made, and the day on which the proceedings therein ended, shall both be counted.

Explanation II. For the purpose of this section, a plaintiff or an applicant resisting an appeal shall be deemed to be prosecuting a proceeding.

Explanation III. For the purposes of the section misjoinder of parties or of causes of action shall be deemed to be cause of like nature with defect of jurisdiction.

15.          Exclusion of time during which proceedings are suspended: (1) In computing the period of limitation prescribed for any suit or application for the execution of a decree, the institution or execution of which has been stayed by injunction or order, the time of the continuance of the injunction of order, the day on which it was issued or made, and the day on which it was withdrawn, shall be excluded.

(2)          In computing the period of limitation prescribed for any suit of which notice has been given in accordance with the requirements of any enactment for the time being in force, the period of such notice shall be excluded.

16.          Exclusion of time during which proceedings to set aside execution sale are pending. In computing the period of limitation prescribed for a suit for possession by a purchaser at a sale in execution of a decree, the time during which a proceeding to set aside the sale has been prosecuted shall be excluded.

17.          Effect of death before right to sue accrues: Where a person, who would, if he were living have a right to institute a suit or make an application, dies before the right accrues, the period of limitation, shall be computed from the time when there is a legal representative of the deceased capable of instituting or making such suit or application.

(2)          Where a person against whom, if he were living, a right to institute a suit or make an application would have accrued dies before the right accrues, the period of limitation shall be computed from the time when there is a legal representative of the deceased against whom the plaintiff may institute or make such suit or application.

(3)          Nothing in sub-sections (1) and (2) applies to suits to enforce rights of pre-emption or to suits for possession of immovable property or of an hereditary office.

18.          Effect of fraud. Where any person having a right to institute a suit or make an application has, by means of fraud been kept from the knowledge of such right or of the title on which it is founded, or where any document necessary to establish such right has been fraudulently concealed from him, the time limited for instituting a suit or making an application-

(a)          against the person guilty of the fraud or accessory thereto, or

(b)          against any person claiming through him otherwise than in good faith and for a valuable consideration shall be computed from the time when me fraud first became known to the person injuriously affected thereby, or, in the case of concealed document, when he first had the means of producing it or compelling its production.

19.          Effect of acknowledgment in writing. (1) Where, before the expiration of the period prescribed for a suit or application in respect of any property or right, an acknowledgment of liability in respect of such property or right has been made in writing signed by the party against whom such property or right is claimed, or by some person through whom he derives title or liability, a fresh period of limitation shall be computed from the time when the acknowledgment was so signed.

(2)          Where the writing containing the acknowledgment is undated, oral evidence may be given of the time when it was signed; but, subject to the provision of the Evidence Act, 1872, oral evidence of its contents shall not be received.

Explanation I. For the purposes of this section an acknowledgment may be sufficient though it omits to specify the exact nature of the property or right, or avers that the time for payment, delivery performance or enjoyment has not yet come, -or is accompanied by a refusal to pay, deliver, perform or permit to enjoy, or is coupled with a claim a to set-off, or is addressed to a person other than the person entitled to the property or right.

Explanation II. For the purposes of this section, 'signed' means signed either personally or by an agent duly authorized in this behalf.

Explanation III. For the purposes of this section an application for the execution of a decree or order is an application in respect of a right.

20.          Effect of payment on account of debt or of interest on legacy. (1) Where payment on account of a debt or of interest on a legacy is made before the expiration of the prescribed period by the person liable to pay the debt or legacy, or by his duly authorized agent, a fresh period of limitation shall be computed from the time when the payment was made:

Provided that,  an acknowledgment of the payment appears in the handwriting of, or in a writing signed by the person making the payment.

(2)          Effect of receipt of produce of mortgage land. Where mortgaged land is in the possession of the mortgagee, the receipt of the rent or produce of such land shall be deemed to be a payment for the purpose of sub-section (1).

Explanation. Debt includes money payable under a decree or order of Court.

21.          Agent of person under disability. (1) The expression 'agent duly authorized in his behalf' in sections 19 and 20, shall, in the case of a person under disability, include his lawful guardian committee, or manager, or an agent-duly authorized by such guardian, committee or manager to sign the acknowledgment or make the payment.

(2)          Acknowledgment or payment by one of several joint contractors, etc. Nothing in the said section renders one of several joint contractors, partners, executors or mortgagees chargeable by reason only of a written acknowledgment signed or of a payment made by, or by the agent of, any other or others of them.

(3)          For the purposes of the said section-

(a)          an acknowledgment signed, or a payment made, in respect of any liability by, or by the duly authorized agent of, any widow or other limited owner of property who is governed by the Hindu Law, shall be a valid acknowledgment or payment, as the case may be as against a reversioner succeeding to such liability; and

(b)          where a liability has been incurred by, or on behalf of Hindu undivided family as such, an acknowledgment or payment made by, or by the duly authorized agent of, the manager of the family for the 'time being shall be deemed to have been made on behalf of the whole family.

22.          Effect of substituting or adding new plaintiff or, defendant. (1) Where, after the institution of a suit, a new plaintiff or defendant is substituted or added, the suit shall as regards him, be deemed to have been instituted when he was so made a party.

(2)          Nothing in sub-section (1) shall apply to a case where a party is added or substituted owing to an assignment or devolution of any interest during the pendency of a suit or where a plaintiff is made a defendant or a defendant is made a plaintiff.

23.          Continuing breaches and wrongs. In the case of a continuing breach of contract and in the case of a continuing wrong independent of contract, a fresh period of limitation begins to run at every moment of the time during which the breach or the wrong, as the case may be continues.

24.          Suit for compensation for act not actionable without special damage. In the case of a suit for compensation for an act which does not give rise to a cause of action unless some specific injury actually results therefrom, the period of limitation shall be computed from the time when the injury results.

Illustration

A owns the surface of a field. B owns the sub-soil, B digs coal thereout without causing any immediate apparent injury to the surface but at last the surface subsides. The period limitation in the case of a suit by A against B runs from the time of the subsidence.

25.          Computation of time mentioned in instruments. All instruments shall, for the purposes of this Act, be deemed to be made with reference to the Gregorian calendar.

Illustrations

(a)          A Hindu makes a promissory note bearing a Native date only, and payable four months after date. The period of limitation applicable to a suit on the note runs from the expiration of four months after date computed according to the Gregorian calendar.

(b)          A Hindu makes a bond, bearing a Native date only for the repayment of money within one year. The period of limitation applicable to a suit on the bond runs from the expiration of one year after date computed according to the Gregorian calendar.

PART-IV

Acquisition of Ownership by Possession

26.          Acquisition of right to easements. (1) Where the access and use of light or air to and for any building have been peaceably enjoyed therewith as an easement, and as of right, without interruption, and for twenty years, and where any way or watercourse, or the use of any water or any other easement (whether affirmative or negative) has been peaceably and openly enjoyed by any person claiming title thereto as an easement and as of right without interruption and for twenty years, the right to such access and use of light or air, way, watercourse, use of water, or other easement shall be absolute and indefeasible. Each of the said periods of twenty years shall be taken to be a period ending within two years next before the institution of the suit wherein the claim to which such period relates is contested.

(2)          Where the property over which a right is claimed under sub-section (1) belongs to the Government that sub-section shall be read as if for the words 'twenty years' the words 'sixty years' were substituted.

Explanation. Nothing is an interruption within the meaning of this section unless where there is an actual discontinuance of the possession or enjoyment by reason of an obstruction by the act of some person other than the claimant, and unless such obstruction is submitted to or acquiesced in for one year after the claimant has notice thereof and of the person making or authorizing the same to be made.

Illustrations

(a)          A suit is brought in 1911 for obstructing a right of way. The defendant admits the obstruction but denies the right-of-way. The plaintiff proves that the right was peaceable and openly enjoyed by him, claiming title thereto as an easement and as of right, without interruption from 1st January, 1890 to 1st January, 1910. The plaintiff is entitled to judgment.

(b)          In a like suit the plaintiff shows that the right was peaceably and openly enjoyed by him for twenty years. The defendant proves that the plaintiff, on one occasion during the twenty years, had asked his leave to enjoy the right. The suit shall be dismissed.

27.          Exclusion in favour of reversionary of servant tenement. Where any land or water upon, over or from which any easement has been enjoyed or derived has been held under or by virtue of any interest for life or any term of years exceeding three years from the granting thereof, the time of the enjoyment of such easement during the continuance of such interest or term shall be excluded in the computation of the period of twenty years in case the claim is within three years next after the determination of such interest or term, resisted by the person entitled, on such determination, to the said land or water.

Illustration

A sues for a declaration that he is entitled to a right of way over B's land. A proves that he has enjoyed the right for twenty-five years; but B shows that during ten of these years C, a Hindu widow, had a life interest in the land, that on C's death B became entitled to the land, and that within two years after C's death he contested A's claim to the right. The suit must be dismissed, as A, with reference to the provisions of this section has only proved enjoyment for fifteen years.

28.          Extinguishment of right to property. At the determination of the period hereby limited to any person for instituting a suit for possession of any property, his right to such property shall be extinguished.

PART-V

Saving and Repeals

29.          Savings. (1) Nothing in this Act shall affect Section 25 of the Contract Act, 1872.

(2)          Where any special or local law prescribed for any suit, appeals or application, a period of limitation different from the period prescribed thereto by the First Schedule, the provisions of Section 3 shall apply, as if such period were prescribed therefor in that Schedule, and for the purpose of determining any period of limitation prescribed for any suit, appeal or application by any special or local law-

(a)          the provisions contained in Section 4, Sections 9 to 18, and Section 22 shall apply only in so .far as, and to the extent to which, they are not expressly excluded by such special or local law; and

(b)          the remaining provisions of this Act shall not apply.

(3)          Nothing in this Act shall apply to suits under the Divorce Act, 1869 (IV of 1869).

(4)          Sections 26 and 27 and the definition of 'Easement' in Section 2 shall not apply to cases arising in territories to which the Easements Act, 1882, may for the time being extend.

30 & 31.                Provisions for suits for which the period prescribed in shorter than that prescribed by the Limitation Act, 1877. Provisions for suits by certain mortgagees in territories mentioned in the Second Schedule. Repealed by the Repealing and Amending Act, 1930 (VIII 1930), Section 3 an Second Schedule.]

32.          Repeals. Rep. by the Second Repealing and Amending Act, 1914 (XVII of 1914). Section 3, Second Schedule.

The Sale of Goods Act, 1930

(III of 1930)

15th March. 1930]

An Act to define and amend the law relating to the sale of goods

Preamble: Whereas it is expedient to define and amend the law relating to the sale of goods;

It is hereby enacted as follows: -

CHAPTER I

PRELIMINARY

1.            Short title, extent and commencement: (1) This Act may be called the Sale of Goods Act, 1930.

(2)          It extends to the whole of Pakistan.

(3)          It shall come into force on the first day of July, 1930.

2.            Definitions : In this Act, unless there is anything repugnant in the subject or context,

(1)          'buyer' means a person who buys or agrees to buy goods ;

(2)          'delivery' means voluntary transfer of possession from one person to another ;

(3)          goods are said to be in a deliverable state' when they are in such state that the buyer would under the contract be bound to take delivery of them ;

(4)          'document of title of goods,' includes a bill of lading, dock-warrant, warehouse-keeper's certificate, wharfinger's certificate, railway receipt, warrant or order for the delivery of goods and any other document used in ordinary course of business as proof of the possession or control of goods, or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented ;

(5)          'fault' means wrongful act or default;

(6)          'future goods' means goods to be manufactured or produced or acquired by the seller after the making of the contract of sale ;

(7)          'goods' means every kind of movable property other than actionable claims and money and includes electricity, water, gas, stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale ;

(8)          a person is said to be 'insolvent' who has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an Act of insolvency or not ;

(9)          'mercantile agent' means a mercantile agent having in the customary course of business, as such agent authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods, or to raise money on the security of goods ;

(10)        'price' means the money consideration for a sale of goods.;

(11)        'property' means the general property in goods, and not merely a special property ;

(12)        'quality of goods' includes their state or condition ;

(13)        'seller' means a person who sells or agrees to sell goods ;

(14)        'specific goods' means goods identified and agreed upon at the time a contract of sale is made ; and

(15)        expressions used not defined in this Act and defined in the Contract Act, 1872, have the meanings assigned to them in that Act.

3.            Application of provisions of Act IX of 1872 : The unrepealed provisions of the Contract Act, 1872, save in so far as they are inconsistent with the expression provisions of this Act, shall continue to apply to contracts for the sale of goods.

CHAPTER II

FORMATION OF THE CONTRACT;

Contract of Sale

4.            Sale and agreement to sell  (1) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another.

(2)          A contract of sale may be absolute or conditional.

(3)          Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.

(4)          An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.

Formalities of the Contract

5.            Contract of sale how made: (1) A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract may provide for the immediate delivery of the goods or immediate payment of the price or both, or for the delivery or payment by installments, or that the delivery or payment or both shall be postponed.

(2)          Subject to the provisions of any law for the time being in force, a contract of sale may be made in writing or by word of mouth, or partly in writing and partly be word of mouth or may be implied from the conduct of the parties.

Subject-matter of Contract

6.            Existing or future goods: The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or future goods.

(2)          There may be a contract for the sale of goods the acquisition of which by the seller depends upon a contingency which may not happen.

(3)          Where by a contract of sale the seller purports to effect a present sale of future goods, the contract operate as an agreement to sell the goods.

7.            Goods perishing before making of contract: Where there is a contract' for the sale of specific goods, the contract is void if the goods without the knowledge of the seller have at the time when the contract was made, perished or become so damaged as no longer to answer to their description in the contract.

8.            Goods perishing before sale but after agreement to sell: Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided.

The Price

9.            Ascertainment of Price: (1) The price in a contract of sale may be fixed by the contract or may be left to be fixed in manner thereby agreed or may be determined by the course of dealing between the parties.

(2)          Where the price is not determined in accordance with the foregoing provisions, the buyer shall pay the seller a reasonable price. What is a reasonable price is a question of fact dependent on the circumstances of each particular case.

10.          Agreement to sell at valuation: (1) Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of a third party and such third party cannot or does not make such valuation, the agreement is thereby avoided:

Provided that, if the goods or any part thereof have been delivered to, and appropriated, by the buyer, he shall pay a reasonable price therefor.

(2)          Where such third party is prevented from making the valuation by the fault of the seller or buyer, the party not in fault may maintain a suit for damaged-against the party in fault.

Conditions and Warranties

11.          Stipulations as to time: Unless a different intention appears from the terms of the contract, stipulations as to time of payment are not deemed to be of the essence of a contract of sale. Whether any other stipulation as to time is of the essence of the contract or not depends on the terms of the contract.

12.          Condition and warranty: (1) A stipulation in contract of sale with reference to goods which are the subject thereof may be a condition or a warranty.

(2)          A condition is a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.

(3)          A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.

(4)          Whether a stipulation is a contract of sale is a condition or a warranty depends in each case on the construction of the contract. A stipulation may be a condition, though called a warranty in the contract.

13.          When condition to be treated as warranty: (1) Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may waive the condition or elect to treat the breach of the condition as a breach of warranty and not as a ground for treating the contract as repudiated.

(2)          Where a contract of sale is not severable and the buyer has accepted the goods or part thereof, the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty and not as a ground for rejecting the goods and treating the contract as repudiated, unless there is a term of the contract, express or implied, to that effect.

(3)          Nothing in this section shall affect the case of any condition or warranty fulfillment of which is excused by law by reason of impassibility or otherwise.

14.          Implied undertaking as to title, etc: In a contract of sale, unless the circumstances of the contract are such as to show a different intention there is-

(a)          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, be will have a right to sell the goods at the time when the property is to pass ;

(b)          an implied warranty that the buyer shall have and enjoy quiet possession of the goods;

(c)           an implied warranty that, the .goods shall be free from any charge or encumbrance in favour of any third party not declared or known to the buyer before or at the time when the contract is made. '

15.          Sale by description.: Where there is a contract for the sale of goods by description, there is an implied condition that the goods shall correspond with the description; and if the safe is by sample as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.

16.          Implied conditions as to quality of fitness : Subject to the provisions of this Act and of any other law for the time being in force, there is no implied warranty or condition as to the quality or fitness for any particular purpose of goods supplied under a contract of sale, except as follows :-

(1)          Where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required, so s to show that the buyer relies on the seller's skill or judgment, and the goods are of a description which it is in the course of the seller's business to supply (whether he is the manufacturer or producer or not), there is an implied condition that the goods shall be-reasonably fit for such purpose:

Provided that, in the case of a contract for the sale of a specified article under its patent or other trade name, there is no implied condition as to its fitness for any particular purpose.

(2)          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:

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.

(3)          An implied warranty or condition as to quality or fitness for a particular purpose may b' annexed by the usage of trade.

(4)          An express warranty or condition does not negative a warranty or condition implied by this Act unless inconsistent therewith. '

17.          Sale by sample: (1) A contract of sale is a contract for sale by sample where there is a term in the contract, express or implied, to that effect.

(2)          In the case of a contract for sale by sample there is an implied condition-

(a)          that the bulk shall correspond with the sample in quality ;

(b)          that the buyer shall have a reasonable opportunity of comparing the bulk with the sample

(c)           that the goods shall be free from any defect, rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.

 

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You can explore the contents of the grid in many ways.

The grid has multiple search criteria. For a general search, input the 'search word' into the top column you want to search. Select 'contain' from the drop-down menu below, and hit 'enter' The search results will be automatcally populated. Please NOTE the table is Ajax-enabled, which means it won't refresh, and will display results in a seamless way, which can be seen usually in few seconds. Alternatively, you can press the 'sort buttons before the label in each column in the header to sort the records in ascending or descending order.

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