Contracts for Sale of Goods (11:III): Difference between revisions
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Contracts for Sale of Goods (11:III) (view source)
Revision as of 00:10, 6 August 2021
, 6 August 2021→b) Implied Warranty of Quiet Possession: ss 16(b) and (c)
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==== b) Implied Warranty of Quiet Possession: ss 16(b) and (c) ==== | ==== b) Implied Warranty of Quiet Possession: ss 16(b) and (c) ==== | ||
Under ss 16(b) and (c), the ''SGA'' provides implied '''warranties''' that in the future the buyer will enjoy undisturbed possession of the goods, free from any liens, charges, security interests, or other encumbrances in favour of third parties that are unknown to the buyer at the time the contract is made. For example, a contract of sale for a good may be made between a seller and buyer where a third-party lender made a loan to the seller with this good as collateral. If the secured creditor (the lender) subsequently makes claims against the buyer who was unaware of this security interest in the good at the time of sale, the buyer can sue the seller for damages resulting from breach of this implied warranty. The quantum of damages would likely be the amount of the liens outstanding so that the buyer could pay them off. | |||
==== c) Implied Condition of Compliance with the Description: s 17 ==== | ==== c) Implied Condition of Compliance with the Description: s 17 ==== | ||