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Section 112: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]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 111 All 266 Sections of Indian Contract Act Section 113

Legal Commentary & Landmark Judgments: Section 112

Historical Section 112 of the Indian Contract Act, 1872 provided that where goods were ordered from a manufacturer or producer for a particular purpose, an implied warranty existed that they were free from any latent defect arising from the manufacturing process that could not be detected by ordinary examination. Modernized into Section 16(2) of the Sale of Goods Act, 1930 as an implied condition of merchantable quality, this statutory duty protects commercial buyers against internal manufacturing flaws.

  • Sale by Description from Manufacturer or Dealer: Applies to goods bought by description from a seller who deals in goods of that description (including the manufacturer).
  • Implied Condition of Merchantable Quality: Requires that the goods must be reasonably fit for the ordinary purposes for which goods of that description are customarily used, commercially saleable, and free from undisclosed defects.
  • Latent Defects vs Patent Defects: Where the buyer has examined the goods, no implied condition exists as regards defects which such examination ought to have revealed; but latent defects remain the manufacturer's strict liability.
Key Landmark Precedents:
  • Drummond & Sons v. E.H. Van Ingen & Co. (1887) 12 App Cas 284 (HL): Foundational House of Lords decision establishing that the manufacturer's duty requires that goods supplied shall not possess latent defects making them unmerchantable for the purpose for which they are known to be destined.
  • Bristol Tramways & Carriage Co. v. Fiat Motors Ltd. [1910] 2 KB 831: Held that 'merchantable quality' means that the goods comply with the description in the contract so that to a purchaser buying goods of that description the goods would be good commercial tender.
Courtroom Practice & Strategic Litigation Guidance:

In product defect litigation, obtain an independent expert metallurgical or laboratory test report prior to filing the suit. Plead that the defect was latent and inaccessible to visual pre-delivery inspection, thereby precluding the defense that inspection waived the statutory warranty of merchantability.

Section 111 All 266 Sections of Indian Contract Act Section 113