Home  /  Indian Contract Act  /  Section 111

Section 111: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]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 110 All 266 Sections of Indian Contract Act Section 112

Legal Commentary & Landmark Judgments: Section 111

Historical Section 111 of the Indian Contract Act, 1872 provided that on the sale of provisions or goods for a specified purpose, an implied warranty arose that the goods were fit and suitable for that designated use, provided the buyer relied on the seller's judgment or skill. Transposed into Section 16(1) of the Sale of Goods Act, 1930, this rule imposes strict liability on the supplier where reliance is demonstrated.

  • Disclosure of Particular Purpose: The buyer must make known to the seller, expressly or by necessary implication, the particular purpose for which the goods are required, showing reliance on the seller.
  • Reliance on Seller's Skill or Judgment: The buyer must demonstrate that he relied on the seller's specialized skill, judgment, or manufacturing capability to furnish suitable goods.
  • Course of Seller's Business: The goods must be of a description which it is in the course of the seller's business to supply (whether he be the manufacturer or producer or not).
Key Landmark Precedents:
  • Grant v. Australian Knitting Mills Ltd. [1936] AC 85 (PC): Landmark Privy Council decision holding that where garments contained hidden chemical sulphites causing dermatitis, the buyer was entitled to damages for breach of implied condition of fitness for purpose, reliance on the retailer's skill being implied by the very purchase of goods for personal wear.
  • Medway Oil & Storage Co. v. Silica Gel Corp. (1928) 33 Com Cas 195 (HL): Celebrated ruling establishing that reliance on the seller's skill need not be absolute or total; substantial reliance sufficient to induce the purchase satisfies the statutory test for implied fitness.
Courtroom Practice & Strategic Litigation Guidance:

In commercial litigation claiming damages for failure of specialized industrial equipment, plead detailed pre-contractual communications (technical questionnaires, tenders, specifications) demonstrating that the seller was explicitly briefed on the operating environment and that the buyer relied on the seller's engineering expertise.

Section 110 All 266 Sections of Indian Contract Act Section 112