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Section 114: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]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 113 All 266 Sections of Indian Contract Act Section 115

Legal Commentary & Landmark Judgments: Section 114

Historical Section 114 of the Indian Contract Act, 1872 provided that on the sale of goods which the buyer has not had an opportunity of inspecting, an implied warranty exists that the goods are of merchantable quality. Now subsumed within Section 16(2) of the Sale of Goods Act, 1930, this principle ensures that absent actual inspection, the buyer is legally protected against substandard commercial delivery.

  • Lack of Inspection Opportunity as Trigger: Applies specifically where the buyer purchases goods without prior physical inspection, relying on commercial descriptions, catalog specifications, or shipping documents.
  • Standard of Merchantable Quality: Goods must be of such quality and in such condition that a reasonable buyer, fully acquainted with the facts, would accept them in performance of the contract.
  • Application to Distant and Transit Sales: Foundational for CIF and FOB sales where inspection is deferred until arrival at the destination port.
Key Landmark Precedents:
  • Jones v. Bowden (1813) 4 Taunt 847: Recognized that where goods are sold by commercial description without inspection, an implied warranty exists that they are sound and undamaged by transit or sea water.
  • Union of India v. Commercial Producing Syndicate AIR 1953 Mad 817: The Madras High Court affirmed that where the buyer has no opportunity of inspecting goods before dispatch, the seller is bound to ensure that the goods delivered are of merchantable quality at the destination.
Courtroom Practice & Strategic Litigation Guidance:

When the seller attempts to defeat a claim by alleging that the buyer had opportunity to inspect at the factory gate, establish that the contract provided for delivery at the buyer's warehouse. Under Section 41 and 16(2) of the Sale of Goods Act, the buyer is not deemed to have accepted goods until given a reasonable opportunity of examination.

Section 113 All 266 Sections of Indian Contract Act Section 115