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Section 122: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]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 121 All 266 Sections of Indian Contract Act Section 123

Legal Commentary & Landmark Judgments: Section 122

Historical Section 122 of the Indian Contract Act, 1872 provided that an agreement to sell goods by sample implied a warranty that the bulk would correspond with the sample, and that the buyer was entitled to a reasonable opportunity of examining the bulk before acceptance. Transposed into Sections 17 and 41 of the Sale of Goods Act, 1930, this provision protects the buyer's procedural and evidentiary right to inspection.

  • Opportunity of Inspection as Condition Precedent to Acceptance: The seller is bound, on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether they conform to the contract.
  • Non-Acceptance During Examination: The buyer is not deemed to have accepted the goods merely by taking delivery for examination; acceptance occurs only when he intimates acceptance or retains them beyond a reasonable time without rejection.
  • Burden of Proof on Seller: The seller suing for the price of goods sold by sample must prove that the bulk tendered actually corresponded with the sample submitted.
Key Landmark Precedents:
  • Lorymer v. Smith (1822) 1 B & C 1: Classic commercial precedent holding that where a buyer of wheat by sample was refused permission to inspect the bulk in the seller's granary, he was legally justified in rescinding the contract and refusing to pay.
  • Firm Kanhaiyalal v. Firm Shantilal AIR 1974 Raj 124: The High Court held that where goods sold by sample are delivered, the buyer has a statutory right under Section 41 to inspect the goods before acceptance, and a refusal by the seller to permit inspection relieves the buyer of the obligation to pay.
Courtroom Practice & Strategic Litigation Guidance:

In international or interstate sales, include a structured 'Joint Inspection and Quality Verification' clause specifying the independent inspection agency (e.g., SGS, Bureau Veritas) and the location of sampling. Where a seller files a summary suit for price, defend by showing that the seller refused inspection at destination, thereby breaching Section 41.

Section 121 All 266 Sections of Indian Contract Act Section 123