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Section 115: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]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 114 All 266 Sections of Indian Contract Act Section 116

Legal Commentary & Landmark Judgments: Section 115

Historical Section 115 of the Indian Contract Act, 1872 reinforced that in sales by sample, there is an implied warranty that the bulk shall be merchantable and free from any defect which would not be apparent on reasonable examination of the sample. Transposed into Section 17(2)(c) of the Sale of Goods Act, 1930, this provision establishes the seller's strict liability for hidden flaws running through both the sample and the bulk.

  • Immunity for Apparent Defects in Sample: If a defect is apparent on reasonable examination of the sample, the buyer cannot complain if the bulk contains the same defect.
  • Strict Liability for Hidden / Latent Defects: Where the defect in the sample is latent (not discoverable upon reasonable commercial examination), the seller remains strictly liable if the bulk suffers from that defect rendering it unmerchantable.
  • Standard of Reasonable Examination: The law does not require extraordinary scientific tests or microscopic analysis unless such testing is standard trade usage in the specific commercial industry.
Key Landmark Precedents:
  • Heilbutt v. Hickson (1872) LR 7 CP 438: Landmark authority where shoe manufacturers supplied army boots according to a sample; the soles contained pieces of paper not discoverable without cutting open the boots. Held that the buyer was entitled to reject the boots even after acceptance and export, because the defect was latent in both sample and bulk.
  • Gannon Dunkerley & Co. v. State of Madras AIR 1954 Mad 1130: Explored the doctrines of sample, description, and latent defects under sales law, holding that the presence of latent defects gives rise to remedies for breach of statutory warranty notwithstanding apparent conformity with sample.
Courtroom Practice & Strategic Litigation Guidance:

In pleadings, specifically aver the nature of the examination conducted on the sample and why the defect could not have been uncovered by ordinary visual or physical check. Frame the relief under Section 17(2)(c) of the Sale of Goods Act to preempt the defense that acceptance of sample estopped the buyer from rejecting the bulk.

Section 114 All 266 Sections of Indian Contract Act Section 116