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Section 110: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 109 All 266 Sections of Indian Contract Act Section 111

Legal Commentary & Landmark Judgments: Section 110

Historical Section 110 of the Indian Contract Act, 1872 codified the traditional mercantile doctrine of caveat emptor (let the buyer beware), enacting that an implied warranty of quality or fitness for a particular purpose does not arise merely from the sale of an article, except in recognized commercial contingencies. Codified into Section 16 of the Sale of Goods Act, 1930, this provision establishes the baseline allocation of commercial risk in sales transactions.

  • General Baseline Rule of Caveat Emptor: The seller does not impliedly guarantee the commercial quality or suitability of goods; the buyer is expected to inspect and satisfy himself regarding fitness before purchasing.
  • Exception for Latent Manufacturing Defects: Where an article is sold by the manufacturer, an exception arose regarding latent defects not discoverable by ordinary inspection, shifting risk back to the producer.
  • Freedom of Contractual Modification: The parties remain entirely free to contract out of or expand warranties through express specifications, express representations, or standardized merchant warranties.
Key Landmark Precedents:
  • Jones v. Just (1868) LR 3 QB 197: Classical authority reviewing the scope of caveat emptor and implied warranties, establishing that where goods are sold under a commercial description and the buyer has no opportunity of inspection, the seller impliedly warrants that they are merchantable.
  • Laxmi Engineering Works v. P.S.G. Industrial Institute (1995) 3 SCC 583: The Supreme Court discussed commercial quality standards, defective machinery, and the operational boundaries between caveat emptor and statutory consumer/mercantile protections.
Courtroom Practice & Strategic Litigation Guidance:

In business-to-business (B2B) supply disputes, the seller's primary defense against claims of defective goods is caveat emptor under Section 16 of the Sale of Goods Act. Require the buyer to plead and prove specific statutory exceptions—namely, reliance on seller's skill and disclosure of specific intended purpose.

Section 109 All 266 Sections of Indian Contract Act Section 111